Suzuki deal over Gujarat plant beneficial for MSIL: Bhargava
   
Quotes

Suzuki deal over Gujarat plant beneficial for MSIL: Bhargava

Last Updated: Wednesday, March 5, 2014, 21:55
 
 Comment 0
 
Suzuki deal over Gujarat plant beneficial for MSIL: Bhargava
Gurgaon: Seeking to assuage investor concerns, Maruti Suzuki India Chairman R C Bhargava on Wednesday said the deal to give its Gujarat plant to Suzuki for operations was "inheritingly beneficial" for the company and issues will get resolved gradually.

Seven mutual fund houses including ICICI Prudential MF, Reliance MF and UTI MF, are opposing Maruti's Japanese parent Suzuki Motor Corp's move to make a Gujarat unit its wholly- owned subsidiary as the deal would transform MSIL into a distribution company from a manufacturing one.

When asked about concerns raised by fund houses, Bhargava said, "I am sure as time goes by gradually these concerns will get resolved and we will do our best to resolve concerns for everybody."

"I am confident that when something is inheritingly beneficial it may take time for it to be appreciated but it will get known and things will work," he added.

Suzuki last month decided to take over Maruti's proposed plant in Gujarat and invest in the unit through wholly-owned unit Suzuki Motor Gujarat Pvt Ltd.

State-run Life Insurance Corp (LIC), which holds 6.93 percent stake in the company, has also sought clarifications on the matter.

While the market regulator is yet to hear officially from the fund houses, it is already looking into the matter on suo motu basis.

Last month, the fund houses had written a letter to MSI: chairman saying the decision is clearly "neither fair nor in the interest of shareholders".

Shares of MSIL took a beating on bourses following the reports falling by up to 6 percent last week.

The scrip, however, rose by 1.51 percent to close at Rs 1,622.40 on the BSE today.


PTI

First Published: Wednesday, March 5, 2014, 21:55


Comments


comments powered by Disqus
New Vento 2015
New Vento 2015
Audi all-new SUV Q3
Audi all-new SUV Q3
Indian Billionaire Daughters
Indian Billionaire Daughters
TOP 5  happy cities of India
TOP 5 happy cities of India
Forbes Top 10 Billionaires 2015
Forbes Top 10 Billionaires 2015

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved