Maruti deal: DIIs to muster FII support

Maruti deal: DIIs to muster FII support

Maruti's domestic institutional investors (DIIs) are looking to garner the support of FIIs against the Indian firm's plan to transfer Gujarat project to Japanese parent Suzuki Motor Corp.

Besides, domestic institutional investors are mulling to move the Company Law Board (CLB) on the deal.

Maruti Suzuki India (MSIL) is facing stiff resistance from private sector mutual funds and insurance companies, which own almost 7 per cent of the company, for its decision to allow Suzuki to make cars for MSIL at a proposed plant in Gujarat instead of manufacturing vehicles itself.

A final decision with regard to seeking FIIs’ as well as moving the CLB will be taken only after the outcome of MSIL board meeting on Saturday is known, according to sources.

FIIs including HSBC, Credit Suisse and Norway's government pension fund together hold 21.5 per cent stake in Maruti Suzuki.

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