The country’s leading car maker, Maruti Suzuki India announced on Tuesday that it would issue shares worth Rs 12,841 crore to its parent company Suzuki Motor Corporation to acquire 100 per cent equity capital in the latter’s Gujarat factory.
This is the first time that Maruti has disclosed a value for the Gujarat plant after it said that would buy the plant in July.
Maruti will issue 12.3 million preference shares at Rs 10,420.85 each, which is a 2.7 per cent discount to the stock's closing price on Monday.
“We wish to inform that the Board of Directors of the Company, at its meeting held on 17th October, 2023, approved the acquisition of 12,84,11,07,500 equity shares of INR 10/- each representing 100 per cent paid-up equity share capital (Purchase Shares) of Suzuki Motor Gujarat Private Limited (SMG), owned by Suzuki Motor Corporation, Japan (SMC), for a total purchase consideration of INR 12,841.1 crores (Purchase Consideration),” Maruti Suzuki said in its official exchange filing.
At 10.18 am, Maruti Suzuki's shares were trading 0.5 per cent lower at Rs 10,650 per share.
The share issue will raise Suzuki's stake in Maruti to 58.19 per cent from 56.48 per cent at present.
Suzuki has invested about Rs 18,000 crore in the plant which has been manufacturing cars for Maruti since 2017 and has an annual capacity of 750,000 units.
Maruti’s first electric sport utility vehicle (SUV) will be manufactured in the Gujarat plant. The company plans to roll out six EV models by 2030 from the plant.