Maruti will issue 1.23 crore preferntial shares to Suzuki Motor Corporation (SMC) at Rs 10,420.85 apiece
Maruti will issue 1.23 crore preferntial shares to Suzuki Motor Corporation (SMC) at Rs 10,420.85 apiece to acquire Suzuki Motor Gujarat (SMG). “The consideration payable by the company for such purchase of 100 per cent of the SMG’s equity shares shall be discharged by way of issue and allotment of 1.23 crore equity shares of the company having a face value of Rs 5 each to SMC, at a price of Rs 10,420 per equity share, on a preferential basis,” the company said in an exchange filing on October 17.
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Shares of Maruti Suzuki India Ltd (MSIL) retraced from intraday high of Rs 10,797.85 apiece on NSE druing morning deals and hit intraday low of Rs 10,565.30 per share, logging around 1.30 per cent dip against its close price of Rs 10,704.50 apiece on Tuesday.
Post the preferential issue of shares, Suzuki Motor Corporation, Japan’s shareholding in India’s largest passenger car manufacturer will go up to 58.19 per cent from 56.48 per cent earlier.
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The issuance of these shares follows Maruti’s board’s decision to terminate the contract manufacturing agreement with Suzuki Motor Gujarat Pvt. Ltd. Furthermore, Maruti exercised its option to acquire the shares of SMG from Suzuki Motor Corporation.
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In terms of production, there will be no alteration in the production, logistics, sales, or associated costs. The vehicles that were previously provided by SMG as a contract manufacturer will continue to be supplied in the same manner as before, as per the company’s statement.
