Maruti hits record high

Maruti is currently the top gainer of the day, with the stock rising over 7% at Rs.1859, with an intra day high at Rs.1899.99, a new 52-week high.

The might of the minority shareholders was finally heard and this is a great victory for them. Post the disapproving letters and various media reports, the Board which met on 15^th March has  decided that the approval of the minority shareholders for the Gujarat plant will be taken via a postal ballot and 75% minority shareholders approval would be required to make any changes in the project.

Apart from this, other points to be noted in the Press Release issued are:

• The entire capex for the Gujarat Sub would be funded by depreciation and equity brought in by Suzuki Motor Corporation;
• In the event that both parties mutually agree to terminate the contract manufacturing agreement, the facilities of the Gujarat Sub would be transferred to Maruti Suzuki India Limited 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.
• Construction at the Gujarat unit is scheduled to start within 2014 and once the contracts are finalized, it will once again seek shareholders approval.