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Maruti Suzuki India (MSIL) on Friday said its shareholders have approved a proposal to raise the foreign investor limit in the company to up to 40 per cent from 24 per cent now.
The company, in a BSE filing, said 99.99 per cent shareholders, comprising over 26.68 crore votes, favoured the resolution to hike shareholding limit for FIIs, foreign portfolio investors and qualified foreign investors.
The shareholder voting was held during the annual general meeting held on September 4. When the company was listed in 2003, FII shareholding was limited to 24 per cent, according to the Foreign Exchange Management Regulations, 2000, and FDI policy.
‘Unusual restriction’ RC Bhargava, Chairman, MSIL, said a lot of domestic and foreign investors had told the company that the 24 per cent cap was “an unnatural restriction to buy and sell the company’s shares freely and if the limit is increased, minority shareholders can also benefit as trading in shares will increase”.
MSIL’s parent company Suzuki Motor Corporation had a stake of 56.21 per cent in it and FIIs 21.75 per cent in the car maker, as of June 15 this year.
Shares of MSIL closed at ₹4,272.80, on the BSE on Friday, down 1.87 per cent.
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