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Maruti Suzuki India to consider stock-split proposal

With a number of shareholders asking for a stock-split, country's largest carmaker Maruti Suzuki India (MSI) today said it will put the matter before the company's board for taking it forward.

By: | Published: September 9, 2016 2:28 PM
Maruti Suzuki launches limited edition of Swift Deca; shares rise over 3 per cent Shareholders of the company have been demanding for stock-split saying that such a move would increase retail participation in MSI's scrip. (Reuters)

With a number of shareholders asking for a stock-split, country's largest carmaker Maruti Suzuki India (MSI) today said it will put the matter before the company's board for taking it forward.

"A common demand or request I think of all shareholders was about share split and certainly I can assure that we will put this matter before board for consideration as what should be done in this matter," MSI's Chairman R C Bhargava said while responding to the shareholders during Annual General Meeting (AGM) here.

Shareholders of the company have been demanding for stock-split saying that such a move would increase retail participation in MSI's scrip.

The company's shares are trading at an all-time high, and was up by 1.61 per cent to Rs 5,422 on BSE in the afternoon trade today.

Bhargava said the company's board has approved a dividend of Rs 35 per share for the current fiscal up from Rs 25 last year.

Answering queries of shareholders on volatility in the yen and its impact on the company, Bhargava said MSI has been working on mitigating the impact by localising the production of imported components.

"Yen is somewhat a volatile currency, not only does it becomes strong but sometimes it weakens also. But what we have doing in the past 5-6 years is to increasingly localise the inner components because that is the largest part of the import and there has been substantial amount of progress in that direction and because of that the import content has reduced," Bhargava said.

He further added: "We cannot control the volatility of the Yen but can mitigate most of its impact partly by hedging and partly by reducing the import content and we are doing both these things."

On capex for research and development during the year, Bhargava said the company will invest Rs 900 crore during the current year.

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