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Maruti Suzuki trades higher on the bourses

12 Jun 2014 Evaluate

Maruti Suzuki India is currently trading at Rs. 2461.75, up by 15.15 points or 0.62% from its previous closing of Rs. 2446.60 on the BSE.

The scrip opened at Rs. 2430.10 and has touched a high and low of Rs. 2476.00 and Rs. 2409.00 respectively. So far 21485 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 2505.30 on 26-May-2014 and a 52 week low of Rs. 1217.00 on 28-Aug-2013.

Last one week high and low of the scrip stood at Rs. 2482.55 and Rs. 2370.00 respectively. The current market cap of the company is Rs. 74402.32 crore.

The promoters holding in the company stood at 56.21%, while Institutions and Non-Institutions held 35.96% and 7.83% respectively.

Maruti Suzuki India, which agreed to let parent Suzuki Motor Corporation own an upcoming plant in Gujarat, expects to save about Rs 10,500 crore in the first 15 years by not investing in the facility. It proposes to enter into a contract manufacturing agreement (CMA) with Suzuki Motor Gujarat (SMG), a fully owned subsidiary of Suzuki Motor Corporation (SMC). The CMA would initially be for a period of 15 years and shall be automatically extended for a further period of 15 years, unless the parties mutually agree to terminate it; and after the expiry of 30 years, MSIL and SMG may mutually agree to extend the period of the CMA.

The earnings on investments not made by MSIL in Gujarat would continue during the extended period of the CMA. MSIL would save on the investment needed to set up manufacturing capacity in Gujarat to the extent of the equity investments to be made by SMC in SMG. The amount would depend on the time period that would elapse from the start to when capacity reaches 1.5 million cars. This would be financed by equity from SMC and accumulated depreciation. MSIL had in 2012 announced plans to invest Rs 4,000 crore to set up its third plant on a 700-acre site near Mehsana by 2015-16 with a capacity of 2.5 lakh units in the first phase. Last year, the company said the plant had been delayed due to the slowdown in the automotive market.

In January, SMC decided to take over setting up of the Gujarat plant and said it would invest $488 million. Maruti's institutional investors opposed the move and sought Sebi's intervention to safeguard the interests of minority shareholders. Private sector mutual funds and insurance companies, which own almost 7% of the company, led the opposition. In March, under pressure from institutional investors, Maruti decided to seek the approval of minority shareholders after tweaking some of the earlier proposals for the plant.

 

Maruti Suzuki India Share Price

13859.25 130.85 (0.95%)
10-Jul-2026 16:59 View Price Chart
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