Shares in Maruti rose after the company received an approval from shareholders for its Gujarat plant. As per the new Companies Act, 2013, the company needed over 50 percent of the minority votes cast to be in its favour.
"Out of the total votes cast by the minority shareholders, 89.75 percent voted in favour while 10.25 percent voted against the resolution, " Maruti Suzuki India (MSI) Chairman R C Bhargava told reporters here
Last year, under pressure from institutional investors, Maruti Suzuki had decided to seek minority shareholders' approval after tweaking some of the earlier proposals.
The change was, however, opposed by institutional investors forcing the company to seek minority shareholders' approval on the matter. They had even approached market regulator Sebi seeking its intervention to safeguard the interests of minority shareholders.
Maruti shares have been on a stupendous rise since the start of the year. Though the Sensex year to date returns are negative, Maruti has generated good returns for its shareholders, along with stocks like Reliance Industries.
With inputs from PTI