Maruti hires investment bankers to push plan

Posted By: Religare
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Maruti hires investment bankers to push plan
Country's largest car maker Maruti Suzuki India has appointed two local investment bankers — Kotak Mahindra Capital and Axis Capita as the company seeks to persuade minority investors to back a controversial plan that calls for the carmaker's proposed Gujarat factory to be set up by parent Suzuki Motor Corp, as per ET reported.

According to ET report, the auto giant is seeking minority shareholder approval under Section 188 of the Companies Act for the special resolution related to the plan. It needs the support of at least three-fourths of its public shareholders to get the proposal passed, which in effect means a bloc with an 11 per cent stake can block the resolution.

Suzuki Motor owns a 56.21 per cent stake in MSIL, with the rest being held by the public.

The investment bankers won't have any role in trying to sway investors, a Maruti Suzuki spokesperson said by email. They "have not been appointed to convince the institutional investors — domestic or foreign — to vote in favour of the Gujarat project structure," he said. That's being done by a Maruti Suzuki team led by chairman RC Bhargava and managing director and CEO Kenichi Ayukawa, he said.

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