 "Suzuki Motor's stake in Maruti Suzuki to rise to 58.19% from 56.48%")
Maruti Suzuki India (MSI) Ltd on Friday announced that its board has approved the allotment of 12,322,514 shares to Suzuki Motor Company Ltd on a preferential basis at Rs 10,420.85 apiece. In a regulatory filing, India's largest carmaker said that the stake of Japan's Suzuki in the company will rise to 58.19 per cent from 56.48 per cent after the allotment.
"The board approved the allotment of 1,23,22,514 no. of equity shares of the company having face value of Rs 5 each at a price of Rs 10,420.85 per equity share," the filing read.
The company also said that the price of Rs 10,420.85 per equity share is being discharged by the company for the purchase of 100 per cent equity shares of Suzuki Motor Gujarat Private Limited for Rs 12,800 crore.
Earlier, Maruti Suzuki recorded its highest-ever monthly sales, selling 199,217 units in October 2023. The company's total exports also registered an uptick of about 7 per cent year-on-year as the number went up from 20,448 units to 21,951 units for the month of October.
Total year-to-date sales for Maruti Suzuki sales were up by 8.36 per cent as the company sold 96,456 vehicles more during April-October 2023 than in the same period last year.
Earlier this month, the company also announced that it was looking to bring in more flexibility in its production processes in order to produce vehicles as per the evolving market scenario. Maruti Suzuki is looking to strengthen the production of high-selling utility vehicles while curtailing the rollout of entry-level cars.
"Diverging demand patterns between utility vehicles and the small car segment is continuing. The company is working on increasing the flexibility in operations to produce vehicles as per the evolving market demand," Maruti Suzuki India Executive Officer of Corporate Affairs Rahul Bharti said in an analyst call.
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He noted that the automaker has discovered that one of the reasons for the recent dip in the margins is that it was producing "some slow-moving cars".
"And we did not have sufficient production capacity for the cars that had demand. If we had the flexibility of both, whether it is semiconductor supplies or in-house production, we would probably have less of such a problem," Bharti said. Hence, it's a conscious move to increase the flexibility of production operations, he added.
MSI currently has an installed production capacity of around 2.3 million units per annum spread across its plants in Haryana and Gujarat.
As of 9:45 am, Maruti Suzuki's shares were trading 0.22 per cent in the green at Rs 10,517.2 apiece on BSE.
(With agency inputs)
(With agency inputs)