"The board of company has approved implementing the expansion through a 100 per cent Suzuki subsidiary as it would result in substantial financial benefit to company and its subsidiary," Maruti Suzuki (India) said in a filing to Bombay Stock Exchange.
Japanese parent Suzuki Motor Corporation has proposed to invest USD 485 million in a wholly owned manufacturing facility in Gujarat to make cars and other vehicles on contract for sale by its listed Indian subsidiary,
SMC, which owns 56 per cent stake in MSIL, would start an all-new 100 per cent-owned subsidiary, Suzuki Motors Gujarat Private Limited with an initial capital of Rs100 crore. The company will not be listed and would come into operation by April this year. The company will exclusively contract-manufacture and sell vehicles to Maruti Suzuki India Ltd (MSIL), which will only market those vehicles in India and abroad.
Jolted by announcement, shares of company closed at Rs 1563.20 a piece, down 8.12 per cent from previous close on BSE.
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