Maruti Suzuki hits record high

Maruti Suzuki India has rallied 9% to Rs 1,900, also its record high on the BSE after the company has decided to seek the approval of minority shareholders for the company’s Gujarat project.

The board of directors of Maruti Suzuki India met on Saturday reviewed the Gujarat project, has decided, as a measure of good corporate governance, to seek minority shareholders approval, even though not required by law.

The company said entire capex for the Gujarat Sub would be funded by depreciation and equity brought in by Suzuki Motor Corporation and in the event that both parties mutually agree to terminate to contract manufacturing agreement, the facilities of the Gujarat Sub would be transferred to Maruti Suzuki India at book value.

The impact of any direct or indirect taxes on account of the contract manufacturing agreement would be assessed before finalizing the agreement and as earlier stated, the Gujarat Sub would function on the basis that it would neither generate surpluses nor make losses, it added.

The stock opened at Rs 1,875 and hit a low of Rs 1,851 on the BSE. A combined over one million shares changed hands on the counter in early morning deals on the BSE and NSE.