Sunday, March 7, 2021
Indian Drives
No Result
View All Result
No Result
View All Result
Indian Drives
No Result
View All Result
Home Latest News

Suzuki Motor Corp. Might Increase Share Holding in Maruti Suzuki by 5%

by indiandrives
in Latest News
0 0
0
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

Japanese auto company, Suzuki Motor Corp is reportedly contemplating buying as much as 5% stake in Maruti Suzuki from open market. The plan, which has seen a lot of delays due to many counts, could result in an increase of 59% in Suzuki’s stake in Maruti.

This buyout is expected to be done over the year, according to sources in the industry of merchant banking. According to sources the deal is live right now, so a lot of details are not yet available. Suzuki intends to purchase around 5% shares of Maruti Suzuki from open market, without disturbing open offer. With talks beginning about three months prior to natural crisis in Japan, necessary approvals for the plan had already begun taking place. However, the purchase got delayed. The company now feels the moment is right, for getting back to their plans.

According to other industry sources, however, Suzuki will probably go to financial institutions for block deals. A stake of 21.09% in Maruti is held by a group of institutions including ICICI Prudential Life Insurance, Bajaj Allianz Life and Life Insurance Corporation.

A stake of 5% would be priced at under $400mn or about INR 1,658 crores, according to the share price of the company on the BSE last Tuesday. On Tuesday, stocks of the company closed at INR 1,147.55, a drop of 1.35%.

When asked about this development, the chairman of the company, R.C. Bhargava, said that he was not aware about this situation. If Suzuki plans to purchase shares directly from open market, they won’t be informed about it. They will only be notified of it during the following board meeting after the pattern of shareholding changes. This meeting will be held on July 26, according to schedule.

According to regulations by the SEBI, a promoter having a stake in the range of 55 to 75, can for an increase only once till 5%, which they can only be an open offer. This is called as creeping acquisition.

This strategy of increasing their share holding might be part of the company’s larger scheme. This could help the parent company to increase their stream of revenue from the profitable Indian company that has sold 1 out of 2 cars in India.

This news has been doing the rounds for quite a few months now. An increased share holding by Suzuki, would help to consolidate their balance sheet, seeing that most of the profits are obtained from the Indian company. Following the announcement to set up a big car facility in Gujarat, they may have bigger plans of turning India into a global centre for export of small cars, according to sources from a leading brokerage firm.

Another expert in the industry stated that Suzuki could also intend to de-list Maruti Suzuki in the future.

Tags: Maruti SuzukiSuzuki Motor Corporation
Previous Post

Chevrolet Beat diesel in India Preview

Next Post

Porsche Posts 29.5% Growth in June Deliveries Worldwide

Next Post

Porsche Posts 29.5% Growth in June Deliveries Worldwide

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Archives

Recent Posts

  • BMW R 18 Classic Cruiser Launched In India: Prices Start At Rs. 24 Lakh
  • Royal Enfield Himalayan Genuine Accessories With Pricing – Make Your Royal Enfield Motorcycle Unique
  • Skoda Kushaq Design Sketches Officially Revealed Ahead Of World Premiere On March 18, 2021
  • Royal Enfield Himalayan 2021 Launched In India At Rs 2.01 Lakh
  • BMW X3 xDrive30i SportX Variant Launched In India: Prices Start At Rs 56.50 Lakh

Categories

Indiandrives.com

© 2020 Indian Drives

Navigate Site

  • Auto Expo 2020
  • Aston Martin
  • Audi
  • Bentley
  • BMW
  • Buyers Guide
  • Car Comparison
  • Chevrolet
  • Driving Tips
  • Events
  • Featured
  • Ferrari
  • Fiat
  • Force
  • Ford
  • Great Wall Motors
  • Harley Davidson
  • Honda
  • Hyundai
  • Isuzu
  • Jaguar
  • Kia
  • Koenigsegg
  • KTM
  • Lamborghini
  • Latest Cars
  • Latest News
  • Lexus
  • Mahindra
  • Maruti Suzuki
  • Maserati
  • Mercedes Benz
  • MG Motor
  • Mitsubishi
  • New Car Reviews
  • Nissan
  • Peugeot
  • Porsche
  • Range Rover
  • Renault
  • Rolls Royce
  • Skoda
  • Tata
  • Test Drive
  • Auto Expo 2020
  • Toyota
  • Kia
  • Upcoming Cars
  • MG Motor
  • Used Car Reviews
  • KTM
  • Volkswagen
  • Isuzu
  • Volvo
  • Harley Davidson
  • MG
  • Great Wall Motors

Follow Us

No Result
View All Result

© 2020 Indian Drives

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In