Maruti skids into the red
Maruti Suzuki has skidded once again into the red today; the stock currently remains 2% down at Rs.1719.50, with an intra day low at Rs.1680.
The stock is down as the 16 mutual fund houses have once again increased their displeasure over Maruti’s Gujarat plans. The 16 funds had written a letter first on 5th March, stating very strongly that this move was detrimental for the company and would turn it into a mere shell company of Suzuki. Post that Maruti had gone ahead and stated that it plans to stick with its plans. These 16 funds have now written another letter to Maruti’s management, once again questioning its decision, while also questioning the role of its independent directors. On Maruti’s 10-member board, there are four independent directors and there are murmurs in the corporate corridors that these four have also expressed their reservations on the deal though not openly.
The market was as such not too happy with this move of Maruti and this raising voice of dissent only goes on to reiterate its displeasure.