NEW DELHI: Maruti Suzuki India on Tuesday said its board has approved issue of shares on preferential basis to Suzuki Motor Corporation (SMC) as consideration for the acquisition of 100 per cent stake in Suzuki Motor Gujarat.

The transaction is expected to enhance SMC’s stake in Maruti Suzuki India to 58.28 per cent from 56.4 per cent currently.

Post such acquisition, Suzuki Motor Gujarat (SMG) will become a wholly-owned subsidiary of the company, Maruti Suzuki India (MSI) said in a regulatory filing.

‘’The Board approved the issue of MSI equity shares to SMC to pay for the SMG shares,’’ it added.

The total number of securities proposed to be issued to SMC as consideration for the acquisition of its 100 per cent stake in SMG shall be decided in a subsequent board meeting, basis relevant valuation reports subject to and in compliance with the applicable regulatory and statutory framework, the auto major stated. MSI board, in its meeting held on Tuesday, evaluated two options for acquiring the SMC equity in SMG, MSI noted.