Maruti Suzuki inches up on getting approval to merge SPIL with itself

Maruti Suzuki India is currently trading at Rs. 1118.50, up by 9.20 points or 0.83% from its previous closing of Rs. 1109.30 on the BSE.

The scrip opened at Rs. 1109.00 and has touched a high and low of Rs. 1123.95 and Rs. 1103.20 respectively. So far 20451 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 1428.20 on 16-Mar-2012 and a 52 week low of Rs. 905.55 on 19-Dec-2011.

Last one week high and low of the scrip stood at Rs. 1146.70 and Rs. 1075.95 respectively. The current market cap of the company is Rs. 32290.03 crore.

The promoters holding in the company stood at 54.21% while Institutions and Non-Institutions held 37.25% and 8.54% respectively.

Maruti Suzuki India (MSIL) has received its board’s approval to merge Suzuki Powertrain India (SPIL) with itself.  Following the merger, MSIL will be able to bring its entire diesel engine capacity under a single management control. All key initiative to strengthen the business, including sourcing, localization, production planning, manufacturing flexibility and cost reduction can be controlled, monitored and improved by the MSIL management.

SPIL, which supplies diesel engine as well as transmissions for vehicles to MSIL, is a subsidiary of Suzuki Motor Corporation (SMC), Japan. SMC hold a 70% stake in SPIL and the remaining 30% is held by MSIL.

The proposed merger will also benefits for the combined entity through synergies in areas like finance, capital structuring and administration and consequent reduction of transaction costs.