Maruti Suzuki shares up over 1.5% on bourses
Mar 05 2014 , Mumbai
Maruti Suzuki's scrip ended 1.51 per cent higher at Rs 1,622.40 on the BSE. During the day, the stock gained 2.28 per cent to Rs 1,634.85.
At the NSE, the car-maker's scrip rose by 1.53 per cent to settle at Rs 1,621.90.
Meanwhile, a stand-off between Maruti Suzuki India and its mutual fund investors seems to be worsening as these institutional shareholders are now planning to approach Sebi after the car maker failed to address their concerns.
The seven fund houses, including ICICI Prudential MF, Reliance MF and UTI MF, may again approach Maruti Suzuki India Ltd (MSIL), and also its Japanese parent firm Suzuki Motor Corporation, over the proposed Gujarat project, sources had said.
These seven fund houses together hold 3.93 per cent stake in MSIL, while 6.93 per cent stake is held by state-run LIC, which has also sought certain clarifications from the company on the Gujarat plant matter.
Japan-based Suzuki Motor Corp last month had decided to take over the setting up of a plant in Gujarat, proposed by subsidiary MSIL. A day after that, Maruti's stock had fallen amid investor concerns regarding its Gujarat plant.
Mutual funds are opposing Suzuki's move to make the proposed Gujarat unit its wholly-owned subsidiary as the deal would transform MSIL into a distribution company from a manufacturing one.
While Sebi is yet to hear officially from the fund houses, it is already looking into the matter on suo motu basis.
As per new corporate governance norms, this deal can be construed as related party transaction requiring approval from public shareholders, but these new regulations are yet to come into force and would be effective from October 1.