Maruti Suzuki: On Friday, Maruti Suzuki said that the preferential issue of 12,322,514 shares at a price of ₹10,420.85 per share to Suzuki Motor Company Ltd had been authorized by the board of directors. A regulatory filing states that after this allotment, Suzuki Motor Company’s ownership position in the top automaker in India will rise from 56.48% to 58.19%.
“The board approved the allotment of 1,23,22,514 no. of equity shares of the company having face value of ₹5 each at a price of ₹10,420.85 per equity share,” according to the statement.
The acquisition of 100% equity shares of Suzuki Motor Gujarat Private Limited for ₹12,800 crore would see the business release a payment of ₹10,420.85 per equity share.
Maruti Suzuki sold 199,217 vehicles in October 2023, marking the brand’s best monthly sales ever. Furthermore, the firm had a 7% year-over-year growth in overall exports, going from 20,448 units to 21,951 units in the same month.
Based on the results for the first half of the year, Maruti Suzuki’s total sales from April to October 2023 increased by 8.36%, selling 96,456 more cars than during the same time in the previous year.
The firm said earlier this month that it intended to improve the flexibility of its production processes in order to adjust to the changing market conditions. Maruti Suzuki wants to reduce the number of entry-level cars it releases while increasing the production of popular utility vehicles.
The small car category and utility vehicle demand patterns are still apart. During a conference call with analysts, Maruti Suzuki India Executive Officer of Corporate Affairs Rahul Bharti stated that the company is working on increasing the flexibility in operations to Produce automobiles in response to changing market demand.
He said that the automaker had determined that the creation of slow-moving cars was one of the factors causing the current drop in profit margins.
Additionally, we lacked the production capability to meet the demand for automobiles. We probably wouldn’t have as much of an issue if we had the flexibility of both internal manufacturing and semiconductor supply, Bharti said.
On Friday, November 24, the closing price of Maruti Suzuki shares was ₹10,481 per share, as opposed to the opening price of ₹10,520 per share.
