Sanand: Maruti Suzuki India Ltd. announced on Tuesday that its board has given the green light to a proposal for the acquisition of the entire equity capital of Suzuki Motor Gujarat (SMG) from Suzuki Motor Corporation. The purchase price for this transaction amounts to Rs 12,841.1 crore, as stated in a regulatory filing by Maruti Suzuki India (MSI).

The company has signed a share purchase and subscription agreement (SPSA) with SMC and SMG to purchase a total of 1,284,110,750,000 shares, each with a face value of Rs 10, representing 100% of SMG’s equity capital owned by SMC.

To cover the cost of this acquisition, the company will issue and allocate 1,232,251,400 equity shares of MSI, each with a face value of Rs 5, to SMC at a price of Rs 10,420.85 per share through a preferential allotment.

This July, MSIL revealed its intention to acquire SMG from Suzuki. This strategic move is aimed at improving production efficiency and simplifying its corporate structure, aligning with its ambitious goal of almost doubling production capacity by the year 2030–31.

The manufacturing facility in Gujarat, with an annual production capacity of 750,000 units, manufactures vehicles for MSIL through a contract manufacturing agreement (CMA) established with SMG back in 2015. DeshGujarat