Key Points of Maruti Suzuki Open Market Share Purchase:
- Suzuki Motor has acquired over 300,000 shares in Maruti Suzuki India (MSIL) through the open market, worth approximately Rs 300 crore.
- The acquisition represents a 0.11% stake in MSIL, and the total stake acquisition amounts to Rs 296 crore.
- The acquisition led to a positive sentiment among investors, resulting in a 2% rise in MSIL shares to Rs 8,700.65 on the Bombay Stock Exchange.
- Suzuki’s previous stake acquisition in MSIL was between June and September 2020, where it acquired a 0.1% stake.
- The recent acquisition by Suzuki is a measure of confidence in MSIL, particularly given the impressive model launches in the SUV segment, a healthy order backlog, and the low-penetration nature of the domestic PV market.
- Despite MSIL underperforming the market in the past six months, experts at ICICI Securities have expressed a positive outlook for the company, stating that they expect MSIL to report a healthy financial profile.
- Investors are optimistic about MSIL’s future growth prospects, particularly given Suzuki’s continued interest in the company.
- The acquisition of shares by Suzuki has been seen as a vote of confidence and is likely to have a positive impact on MSIL’s share price in the coming days.
Details of Maruti Suzuki Open Market Share Purchase:
Maruti Suzuki recently announced that its promoter, Suzuki Motor, had acquired over 300,000 shares in the company through the open market, worth approximately Rs 300 crore. The news led to a positive sentiment among investors, resulting in a 2% rise in MSIL shares to Rs 8,700.65 on the Bombay Stock Exchange on Wednesday.
According to the information disclosed by the Securities and Exchange Board of India’s (SEBI) Substantial Acquisition of Shares and Takeovers (SAST) to the stock exchange, Suzuki Motor Corporation purchased 345,000 shares of MSIL from the open market between March 10 and 13, 2023. This acquisition represents a 0.11% stake, and the total stake acquisition amounts to Rs 296 crore. After this acquisition, the promoters’ stake in the company has increased slightly from 56.37% to 56.48%.
This is not the first time that Suzuki has increased its stake in MSIL. The last time the company did so was between June and September 2020 when it acquired a 0.1% stake. The recent acquisition by Suzuki is seen as a measure of confidence in MSIL, particularly given the impressive model launches in the SUV segment, a healthy order backlog, and the low-penetration nature of the domestic PV market.
Experts at ICICI Securities have also expressed a positive outlook for the company, stating that they expect MSIL to report a healthy financial profile. However, MSIL has underperformed the market in the past six months through Tuesday, with the company’s shares falling by 8% compared to a 3% drop in the S&P BSE Sensex.
Despite this recent underperformance, investors are optimistic about MSIL’s future growth prospects, particularly given Suzuki’s continued interest in the company. The acquisition of shares by Suzuki has been seen as a vote of confidence, and it is likely to have a positive impact on MSIL’s share price in the coming days.
About Maruti Suzuki:
Founded in 1981, Maruti Suzuki India Limited, previously known as Maruti Udyog Limited, is a prominent Indian automobile manufacturer headquartered in New Delhi. Initially owned by the Government of India, the company was later sold to the Japanese automaker Suzuki Motor Corporation in 2003.
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