NEW DELHI - Maruti Suzuki (NS: MRTI ) India Ltd has authorized the issuance of shares to Suzuki Motor Corporation at a price of ₹10,420.85 each, which will increase Suzuki's ownership interest in the Indian automaker to over 58%. The share issuance is part of Maruti's acquisition of Suzuki Motor Gujarat Pvt Ltd, with the transaction valued at ₹12,800 crore (INR100 crore = approx. USD12 million).
This strategic move comes after a period of strong performance for Maruti Suzuki. In October 2023, the company reported record-breaking monthly sales and noted a nearly seven percent rise in total exports. A year-over-year comparison from April to October showed sales increasing by more than eight percent.
In early November, Maruti Suzuki announced a significant shift in its production strategy, emphasizing the enhancement of utility vehicle output while reducing the manufacturing of less popular small cars. Rahul Bharti highlighted the need for flexible production processes to overcome previous challenges, such as semiconductor supply shortages that have limited the company's ability to meet consumer demand effectively.
As of today, Maruti Suzuki's shares saw slight gains on the Bombay Stock Exchange (BSE). The company also disclosed that during its latest share allocation initiative, it confirmed an equity share face value of ₹5 and maintained an annual production capacity of approximately 2.3 million units. This recent development signifies Maruti Suzuki's commitment to aligning its business strategy with market demands and shareholder interests.
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