Shares in Maruti Suzuki fall as Gujarat Plant worries linger

Stocks

oi-Sunil

By Sunil Fernandes

Published: Wednesday, March 12, 2014, 10:22 [IST]

Shares in Maruti Suzuki fell more than 2 per cent, after reports that fund managers wrote to the management of the company questioning its decision to allow Japan's Suzuki Motor Corporation to operate the new Gujarat plant.

Shares in Maruti were last traded at Rs 1527 on the National Stock Exchange.

It may be recalled that the country's largest car maker Maruti Suzuki (India) in Jan had announced that the board of company has proposed that passenger car facility in Gujarat would not be operated by it but its parent, Japan's Suzuki Motor Corporation (SMC).

"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 earlier in Jan.

This action has not gone down with many shareholders, including institutional investors.

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