Maruti Suzuki Secures NCLT Approval for Merger with Suzuki Motor Gujarat

Maruti Suzuki India Limited has taken a significant step towards streamlining its corporate structure by initiating the amalgamation of its wholly owned subsidiary, Suzuki Motor Gujarat Private Limited. Following due legal proceedings, the Principal Bench of the NCLT, New Delhi, has approved the first motion of the scheme of amalgamation.

NCLT Grants Approval for First Motion in Merger Scheme

In its order dated 10 June 2025, the NCLT Principal Bench accepted the joint application submitted by both companies under Sections 230–232 of the Companies Act, 2013. As the transferor company is wholly owned by the transferee, and there is no alteration in the shareholding or liabilities, the Tribunal dispensed with the requirement of holding meetings of equity shareholders, secured, and unsecured creditors.

The decision aligns with previous judicial precedents where similar intra-group mergers involving no dilution of shareholding were granted such relief. The court noted that the amalgamation posed no threat to creditor interests due to the strong financial standing of Maruti Suzuki, whose post-merger net worth is estimated at ₹90,970 crore.

Rationale and Benefits of the Amalgamation

The primary objective of the amalgamation is to consolidate manufacturing operations, improve agility in decision-making, reduce administrative costs, and enhance operational synergies. This strategic integration is expected to improve performance metrics, facilitate best-practice sharing, and optimise resource utilisation.

As part of the merger, all legal proceedings and financial obligations of Suzuki Motor Gujarat will be assumed by Maruti Suzuki. Statutory auditors of both entities have confirmed that the accounting treatment complies with Indian GAAP and the Companies Act provisions. Moreover, the merger does not fall under any competition law restrictions as it involves entities within the same corporate group.

Read More: Maruti Suzuki Share Price in Focus on EVs Production Cut by Two-Thirds!

Maruti Suzuki Share Price Performance 

As of June 12, 2025, at 10:50 AM, Maruti Suzuki share price is trading at ₹12450.00 per share, reflecting a decline of 0.01% from the previous closing price. Over the past month, the stock has declined by 1.32%.

Conclusion

The approval of the first motion scheme by the NCLT marks a critical milestone in Maruti Suzuki’s corporate restructuring plan. By integrating its subsidiary, the company is positioned to benefit from operational consolidation, financial efficiency, and a simplified organisational structure, all while safeguarding stakeholder interests.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.