It is celebration time with Maruti Suzuki stock as the board reviews Gujarat project. Shares of the auto manufacture touched record high at Rs 1899.90, up 9 percent intraday on Monday. The company, which was under heavy scrutiny over its Gujarat plant, has also agreed to seek minority shareholders' nod once contract is finalised. The company announced capex for FY15 at Rs 4,000 crore.
“The entire capex for Gujarat sub would be funded by depreciation and equity brought in by Suzuki Motor Corporation,” it said in a statement. However, it did not make any change in its plans to hand over the Gujarat plant to parent Suzuki. Parent company Suzuki holds the majority 56 percent stake in Maruti while the rest is held by the Indian public, institutional investors as well as LIC (7 percent).
Meanwhile, in an interview with CNBC-Tv18, Maruti chairman RC Bhargava defended the earlier decision of the company. “We did not anticipate so much skepticism to the deal,” he said. “The concept of the deal does not change. It is still designed to create a win-win for Maruti and strengthen the company and benefit its shareholders. But since a lot of people had expressed doubts over some of the aspects of the deal not being explicitly clear. We have cleared them now,” he said.
“The entire capex for Gujarat sub would be funded by depreciation and equity brought in by Suzuki Motor Corporation,” it said in a statement. However, it did not make any change in its plans to hand over the Gujarat plant to parent Suzuki. Parent company Suzuki holds the majority 56 percent stake in Maruti while the rest is held by the Indian public, institutional investors as well as LIC (7 percent).
Meanwhile, in an interview with CNBC-Tv18, Maruti chairman RC Bhargava defended the earlier decision of the company. “We did not anticipate so much skepticism to the deal,” he said. “The concept of the deal does not change. It is still designed to create a win-win for Maruti and strengthen the company and benefit its shareholders. But since a lot of people had expressed doubts over some of the aspects of the deal not being explicitly clear. We have cleared them now,” he said.
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