The Maruti Suzuki Board of Directors of Maruti Suzuki India Ltd. has approved the preferential allotment of 1,23,22,514 equity shares of the company to Suzuki Motor Corporation (‘SMC’), a regulatory filing on Friday said. The document has been published.
The auto major had in October decided to issue and allot fully paid up shares worth Rs 1,230 crore to Suzuki Motors at Rs 10,420.85 per share, taking the total amount to Rs 12,800 crore.
“INR 10,420.85/- per share (a total of 12,841 crores as non-cash consideration released by the Company for the purchase of 100 per cent stake in Suzuki Motor Gujarat Private Limited (“SMG”) owned by SMC) The sum of Rupees)) is determined as follows: Valuation Report dated October 17, 2023 issued by RBSA Valuation Advisors LLP, an independent registered appraiser),” the company said in a filing.
After the issue of preference shares, SMC’s equity share in MSIL will rise from 56.48% to 58.19%.
Meanwhile, SMC has agreed to transfer ownership of a manufacturing plant in Gujarat to MSIL for a total of Rs 12,800 crore.
Maruti Suzuki India shares were trading 0.11% higher at Rs 10,501.0 as of 11:50 am on Friday.
Maruti Suzuki recently reported its highest ever monthly sales in October 2023 with sales of 1,99,217 units. The company’s total export volume also increased from 20,448 units to 21,951 units in the same month, an increase of approximately 7% compared to the previous year. of October.
Maruti Suzuki’s year-to-date total sales increased by 8.36% as the company sold 96,456 more units from April to October 2023 than the same period last year.
India’s largest automaker last month reported an 80.3% year-on-year increase in profit for the quarter to Rs 3,716.5 million, compared with Rs 2,061.5 million in the year-ago period. Maruti Suzuki said its net sales for the quarter rose 24.5% year-on-year to Rs 35,535.1 million compared to Rs 28,543.5 million in the year-ago period due to higher volumes and product mix. .
Operating profit for the quarter increased by 95% to Rs 3,909.01 crore as against Rs 2,046.30 crore year-on-year.
In the July-September period, Maruti Suzuki sold 552,055 units. According to the major automaker, sales in the domestic market totaled 482,731 units, and exports totaled 69,324 units.
Total sales in the same period last year were 517,395 units, of which 4,54,200 units were sold in the domestic market and 63,195 units were sold in the export market.
Maruti Suzuki said its sales for the first half of FY24 stood at Rs 66,380 crore compared to Rs 53,830 crore in the same period last year. The auto major posted a net profit of Rs 6,210 crore in the first half of FY 2024, compared to Rs 3,074 crore in the first half of FY 2022-23.
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