Maruti Suzuki to consider issuance of shares to Suzuki Motors

The issuance of preferential shares to Maruti Suzuki's parent company will be discussed at its upcoming Board of Directors meeting on October 17. Suzuki Motor Gujarat Private Limited will be acquired, the automaker stated in a stock exchange filing on Thursday. The issue of equity shares will be taken into consideration.

“A meeting of the Board of Directors of the Company is scheduled to be held on Tuesday, the 17th October, 2023 to, inter-alia, consider and approve the issue of equity shares of the Company to SMC on a preferential basis for consideration other than cash, to discharge the consideration payable by the Company for acquisition of 100% equity stake of SMC in Suzuki Motor Gujarat Private Limited, subject to the approval of the members through Postal Ballot and all legal and regulatory compliance," said Maruti Suzuki's BSE filing.

Months ago, the Maruti Suzuki board had approved the termination of the contract manufacturing agreement (CMA) with Suzuki Motor Gujarat Private (SMG) Limited.

The board had authorised the decision to purchase SMG shares by issuing Maruti Suzuki equity shares to SMC on a preferential basis after thoroughly evaluating all the factors.