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Maruti Suzuki hits record high on buzz parent may hike stake

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Capital Market
Last Updated : Dec 20 2013 | 11:56 PM IST

Maruti Suzuki India rose 1.66% to Rs 1,810.30 at 13:51 IST on BSE on reports the company's Japanese parent Suzuki Motor Corporation is looking at hiking its stake in the India's largest car maker.

Meanwhile, the BSE Sensex was up 180.38 points, or 0.87%, to 20,889.

On BSE, so far 88,000 shares were traded in the counter, compared with an average volume of 79,092 shares in the past one quarter.

The stock hit a high of Rs 1,829.90 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1,774.10 so far during the day. The stock hit a 52-week low of Rs 1,217 on 28 August 2013.

The stock had outperformed the market over the past one month till 19 December 2013, rising 5.81% compared with the Sensex's 0.87% fall. The scrip had also outperformed the market in past one quarter, gaining 20.09% as against Sensex's 0.30% rise.

The large-cap company has an equity capital of Rs 151.04 crore. Face value per share is Rs 5.

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According to reports, Japan's Suzuki Motor Corporation is yet to decide on the route to hike its stake in Maruti Suzuki India. It could look at a share buyback, which would mean an open offer, or going for creeping acquisition of shares (up to 5% every year). It could also opt for preferential issue of shares, reports added.

As of September 2013, Suzuki held 56.21% of Maruti Suzuki.

Suzuki Motor, which has been sitting on a cash pile of 661 billion yen or Rs 39,600 crore, is considering hiking stake in Maruti Suzuki India as the latter generates about 30% of the parent's global revenues and 40% of its profits, reports suggested.

The Indian car market, in which Maruti holds about 40% share, has been the best-performing for Suzuki, reports said.

Maruti Suzuki India's net profit jumped 194.7% to Rs 670.20 crore on 26.5% growth in net sales to Rs 10211.80 crore in Q2 September 2013 over Q2 September 2012.

Japanese parent Suzuki Motor Corporation holds 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 30 September 2013).

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First Published: Dec 20 2013 | 1:52 PM IST

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