The Board of Maruti Suzuki on Friday, November 25, approved the allotment of 1.23 crore equity shares of the company to parent Suzuki Motor Corporation (SMC) on a preferential basis at ₹10,420.85 per share, aggregating to ₹12,841.1 crore.

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"We wish to inform you that the Board of Directors of the company, at its meeting held on 24th November, 2023, has approved the allotment of 1,23,22,514 equity shares of the Company to Suzuki Motor Corporation (SMC) on a preferential basis," the company said in a filing.

Earlier, in October, the automobile giant had decided to issue and allot 1.23 crore fully paid-up equity shares of ₹5 each to Suzuki Motor, at a price of ₹10,420.85 apiece, aggregating to ₹12,800 crore.

On the other hand, SMC has agreed to transfer the ownership of its manufacturing plant in Gujarat to MSIL, for a total value consideration of ₹12,800 crore.

Post the preferential issue of shares, SMC's equity share in MSIL will rise to 58.19% from 56.48%.

Shareholding of mutual funds in MSIL will fall to 11.71% from 12.19% post-issue. Holdings of foreign institutional investors would also reduce from 21.87% to 20.01% after the allotment.

The stock was trading 0.11% higher at ₹10,499.95 apiece on the NSE. The scrip has risen 13% in the last six months.

First Published:Nov 24, 2023 9:33 AM IST