Maruti Suzuki India Ltd. will issue 1.23 crore equity shares of the business on a preferential basis to Suzuki Motor Corporation, with a face value of Rs 5 per share.
Maruti will be issuing Suzuki Motor Corp 1.23 crore preference shares
Maruti Suzuki India Ltd. will issue 1.23 crore equity shares of the business on a preferential basis to Suzuki Motor Corporation, with a face value of Rs 5 per share.
The price per share of the shares will be Rs 10,420.85. This represents a 2.6 per cent reduction from the carmaker's closing price on 16 October. Over the previous 15 trading sessions, Maruti's shares have traded for an average of Rs 10,471.
The shares being issued to Suzuki Motor Corp. have a total value of Rs 12,820 crore.
Following the termination of the manufacturing contract with Suzuki Motor Gujarat Pvt. Ltd. and the exercise of the option to purchase the shares of SMG from Suzuki Motor Corporation, the Maruti board decided to issue shares.
At the moment, Suzuki Motor Gujarat's sole stakeholder is Suzuki Motor Corporation.
The automobiles that SMG previously supplied as a contract manufacturer will now be delivered as before, the business claimed, so there won't be any changes to real production, logistics, sales, or associated costs.
Following the announcement, Maruti Suzuki India's stock gave up all of its gains and dropped to the day's low.
However, the stock was up by a marginal 0.15 per cent at Rs 10,720.05 by the day's closing.
The Indian division of Suzuki Motor Corporation, a Japanese carmaker, is called Maruti Suzuki India Limited. The business led the Indian passenger car industry with a 42 percent market share as of September 2022.
For the Indian market, the firm is renowned for producing low-maintenance automobiles. The company also has a premium car verticle known as Nexa.