Maruti share price dips after announcement of preferential issues to Suzuki Motor Corporation
Stock market today: Shares of Maruti Suzuki India Ltd (MSIL) retraced from intraday high of ₹10,797.85 apiece on NSE druing morning deals and hit intraday low of ₹10,565.30 per share, logging around 1.30 per cent dip against its close price of ₹10,704.50 apiece on Tuesday. On Monday, Maruti share price ascended to a new life-time high of ₹10,810.85 apiece on NSE after the company announced that board of directors of MSIL has approved the acquisition of 12,84,11,07,500 equity shares of INR 10/- each representing 100% paid-up equity share capital (“Purchase Shares") of Suzuki Motor Gujarat Private Limited (“SMG"), owned by Suzuki Motor Corporation, Japan (“SMC"), for a total purchase consideration of INR 12,841.1 Crores (“Purchase Consideration").
Maruti Suzuki India is set to issue shares to Suzuki Motor Corporation (SMC) for its Gujarat unit acquisition at ₹10,421 per share. In an exchange filing with the exchanges, the company said its Board has in a meeting on October 17 approved the purchase of 100 percent of the Suzuki Motors Gujarat (SMG) shares owned by SMC.
The related party transaction will be done by way of issue and allotment of the MSI’s equity shares to SMC on a preferential basis for consideration other than cash, equal to the net book value of SMG, it added. “The consideration payable for purchase of 100 percent of the SMG’s equity shares shall be discharged by way of issue and allotment of 1,23,22,514 equity shares having face value of ₹5 each, at a price of ₹10,420.85 per equity share, on a preferential basis," it stated.
Read more on livemint.com
