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Maruti Suzuki gains on talk of promoter stake hike plan

The stock was up 2% at Rs 1,816, extending its previous day's 3% rally on the BSE.

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SI Reporter Mumbai
Last Updated : Dec 20 2013 | 12:21 PM IST
Maruti Suzuki India is trading higher by 2% at Rs 1,816, extending its previous day’s 3% rally, on reports that the company’s foreign promoter is planning to increase its holding in the company.

The stock opened at Rs 1,781 and hit a record high of Rs 1,822 on the BSE. A combined around one million shares have changed hands on the counter till noon deals on the BSE and NSE.

In a move aimed at streamlining control and integrating operations with its Indian subsidiary, Japanese auto major Suzuki Motor Corporation (SMC), which currently owns 56.2% stake, is considering increasing its stake in Maruti Suzuki India, the Business Standard report suggests.

It could look at a share buyback, which would mean an open offer, buying from the market or going for creeping acquisition of shares (up to five per cent every year). It could also opt for preferential issue of shares, added report.
 

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First Published: Dec 20 2013 | 12:17 PM IST

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