Maruti Suzuki India’s (MSIL) board of directors granted approval for the purchase of 12.84 billion shares, equivalent to a complete 100% ownership of Suzuki Motor Gujarat Private (SMG), from their Japanese parent company, Suzuki Motor Corporation. This acquisition was approved at a purchase price of Rs 12,841.10 crore, the company said in its exchange filing.
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MSIL will pay for 100% equity of Suzuki Motor Corporation by alloting approximately 12.32 crore equity shares of the company at a price of Rs 10,420.85 per equity share on a preferential basis.
The proposed transaction is being conducted under "arm's length" conditions, considering the valuation report issued by RBSA Valuation Advisors LLP, an Independent Registered Valuer, in compliance with relevant laws, as asserted in the filing.
Around 10:50 am today, Maruti Suzuki shares were trading down by 0.45% on the NSE. It's worth noting that the stock reached a new 52-week high of Rs 10,810.85 on Monday.
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Last month, the total production of passenger cars witnessed a 21% decrease, amounting to 103,858 units, in contrast to 131,258 units during the same period in the previous year.
Conversely, the production of utility vehicles, which includes models such as Brezza, Grand Vitara, Ertiga, and Jimny, exhibited an increase, reaching 56,579 units last month, a notable rise from 29,811 units in September 2022.