Automaker Maruti Suzuki will hold a meeting on Tuesday, October 17, to consider and approve the issue of equity shares to Suzuki Motor Company (SMC).

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The shares will be issued to Suzuki Motor Corporation on a preferential basis to discharge the consideration payable by Maruti for the acquisition of a 100% equity stake of the former in Suzuki Motor Gujarat Private Ltd, the company said in an exchange filing.

Maruti Suzuki India's board approved the termination of the contract manufacturing agreement with Suzuki Motor Gujarat Private Limited (SMG) and exercised the option to acquire the shares of SMG from Suzuki Motor Corporation on July 31, 2023.

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The acquisition of SMG from Suzuki Motor Corporation will happen before March 31, 2024, it had said.

In terms of actual production, logistics, sales, and the cost thereof, there will be no change as the cars earlier supplied by SMG as a contract manufacturer, will now continue to be supplied as before, Maruti had said.

The shares of the automaker ended 1.8% higher on Thursday, October 12, they have been trading in the green for the third day in a row.

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(Edited by : Amrita)