India’s leading auto maker, Maruti Suzuki’s Japanese parent — Suzuki Motor Corporation (SMC) — is believed to have increased its stake in the company by 0.8% to 55%, as indicated in some media reports.
As per the Securities and Exchange Board of India’s (SEBI) Takeover code – if any entity raises its stake in another company beyond 55%, the former will be required to launch an open offer for additional 20% stake in the latter.
Therefore, the current move from the SMC has spread the buzz that the Japan-based firm may be looking to raise its stake in the company further.
Indian company had outperformed its parent in terms of production figure for the calendar year 2009. Maruti had produced total 966,399 vehicles during the twelve months time while Suzuki managed to manufacture 908,302 vehicles.
Maruti Suzuki had reported its highest ever domestic as well as total sales in February 2010. The company sold total 96,650 vehicles during the month under review against 79,190 vehicles in February 2009, up 22%.
The company posted a net profit of Rs 687.53 crore for the quarter ended December 31, 2009 as compared to Rs 213.57 crore for the quarter ended December 31, 2008, up 221.92%.