A big development is likely to happen in the automobile industry of India as sources are claiming that Maruti Suzuki India is about to issue shares to Suzuki Motor Corp for the acquisition of its Gujarat Unit. Kindly note that Maruti Suzuki India would charge Rs 10,421 to Suzuki Motor Corporation per share. Yes, you heard it right, Maruti Suzuki India Ltd. is issuing 1.23 crore equity shares of the company that have a face value of Rs 5 each. Kindly note that the shares will be issued to Suzuki Motor Corporation on a preferential basis and each share will come with a price of Rs10,429.85. Although it is a lower price of Maruti Suzuki India share than its value in the market closed on Monday, October 16, 2023. You should go through this article till the end to learn more details. Swipe down the page.
The decision to issue its shares to Suzuki Motor Corporation was taken in order to acquire its Gujarat Unit. Maruti Suzuki India Ltd is looking forward to acquiring all the shares of its Gujarat Unit. Therefore, Maruti Suzuki India agreed to issue its shares at a 2.6 percent discount on the company’s closing price on Monday, October 16, 2023. Talking about the price of the company’s shares on Monday, the average value of Maruti Suzuki India’s shares was Rs 10471 for the past 15 trading sessions. To note, Maruti Suzuki India Ltd. is issuing its 1.23 preference shares to Suzuki Motor Corp at a total value of Rs 12,820 crore. Continue reading this article and learn more details.
It is said that after the preferential issue of Maruti Suzuki India’s shares, Japan’s shareholding company Suzuki Motor Corporation India’s largest car manufacturing company will be increased from 56.48 percent to 58.19 percent. The news of the issue of shares came after Maruti’s board terminated the contract manufacturing agreement with Suzuki Motor Gujarat Pvt Ltd and instead decided to acquire the shares of its Gujarat Unit from Suzuki Motor Corporation.
Notably, the deal of acquiring Suzuki Motor Gujarat Pvt. Ltd between Maruti Suzuki India and Suzuki Motor Corporation will be done in preference share, not in cash. Currently, Suzuki Motor Corporation is the 100% shareholder of Suzuki Motor Gujarat. Following the announcement of issuing its shares, the shares of Maruti Suzuki India fell to the day’s low and gave up all their gains. The stock is currently trading 0.6 percent lower at Rs 10,642.5.