Cars in India | Autoportal.com
Select City

Maruti Suzuki India to organise investor roadshow on Gujarat plant

Snapshot: With the move, MSI hopes to convince investors to let parent Suzuki Motor Corp. own a proposed land in Gujarat.

- Comments    |    Write Comment

India’s largest automaker, Maruti Suzuki will kick-off a roadshow this month to explain to global and domestic investors its move to let parent Suzuki Motor Corp own a proposed plant in Gujarat. The company’s management led by chairman R C Bhargava, along with managing director and CEO Kenichi Ayukawa and chief financial offer Ajay Sethi will meet institutional investors from the U.S, UK, Asia and India. 

In March, under pressure from institutional investors, Maruti decided to seek the approval of minority shareholders after tweaking some of the earlier proposals for the Gujarat plant, which parent Suzuki Motor Corp (SMC) had decided to take over. Opposing the move, Maruti's institutional investors approached SEBI, seeking its intervention to safeguard the interests of minority shareholders. Private sector mutual funds and insurance companies, which own almost 7 per cent of the company, led the opposition.

Yesterday however, Maruti Suzuki officials met up with the new Gujarat chief minister, Anandiben Patel to discuss issues arising out of the changed plant ownership structure. The resulting revised proposal stated that the investments in the Gujarat plant would be funded by SMC via a wholly owned subsidiary through depreciation and equity brought in by the parent without a ‘mark-up’ on cost production. 

A company spokesperson remarked, “It is a two-month long programme starting from the middle of June to middle of August. The meeting with the institutional investors will take place during this period. Once the roadshow is over, the process for voting by shareholders will start.”

Related car news

  • Maruti Suzuki to invest another Rs. 1,900 crore to develop Rohtak facility 24-02-2017 Anurag Busi Maruti Suzuki to invest another Rs. 1,900 crore to develop R...
  • Current Offers and Discounts on Maruti, Hyundai, Tata & Mahindra Cars – February 2017 23-02-2017 Davender Soni Current Offers and Discounts on Maruti, Hyundai, Tata & Mahi...
  • Honda buys 380 acres in Gujarat for third plant; to launch WR-V on March 16 20-02-2017 Davender Soni Honda buys 380 acres in Gujarat for third plant; to launch W...
  • Maruti Suzuki Vitara Brezza waiting period rises to 7 months 20-02-2017 Anurag Busi Maruti Suzuki Vitara Brezza waiting period rises to 7 months
  • Current Offers and Discounts on Maruti, Hyundai, Nissan, & Tata Cars – February 2017 17-02-2017 Davender Soni Current Offers and Discounts on Maruti, Hyundai, Nissan, & T...
  • Maruti Suzuki Ertiga Limited Edition Launched at Rs 7.85 lakh 15-02-2017 Davender Soni Maruti Suzuki Ertiga Limited Edition Launched at Rs 7.85 lak...


Helpline