Maruti shares recover after initial slump
Mumbai: Recovering from early losses, shares of Maruti Suzuki India bounced back to end in the positive terrain.
The scrip opened weak but bounced back and ended with a gain of 0.50 percent at Rs 1,764.60 on the BSE. During the day, the stock fell by 4.32 percent to Rs 1,680.
At the NSE, Maruti's scrip settled at Rs 1,763, up 0.50 percent.
Meanwhile, raising fresh concerns over Maruti allowing parent Suzuki to undertake a Gujarat project on its own, institutional shareholders have asked the carmaker's board to quash this "oppressive transaction" to save the company from becoming a "shell" entity.
Seven mutual fund investors in Maruti Suzuki India Ltd (MSIL), who had earlier written to company Chairman R C Bhargava about their concerns over the deal, have now been joined by nine other institutional investors.
The institutional investors said they are concerned the decision of MSIL's board in January to let Suzuki Motor Corporation implement the Gujarat project to expand production facilities through a 100 percent subsidiary would convert Maruti into a shell company over time.
MSIL's board approved the proposal from Suzuki Motor to expand the production facilities in Gujarat through a unit "because it would result in substantial financial benefits to MSIL and its minority shareholders," according to a BSE filing on January 28.