NEW DELHI :  Proxy advisory firm Institutional Investor Advisory Services India Ltd has said Maruti Suzuki India Ltd, not parent Suzuki Motor Corp, should invest in the Gujarat unit.

Maruti Suzuki’s minority shareholders should be concerned only about how Maruti deploys its funds, as per Institutional Investor Advisory Services. Maruti has enough funds to meet the initial capital investment of 30 bln rupees from the Gujarat plant.

“If Maruti is not investing in the Gujarat plant, then it must return the excess liquidity to shareholders in the form of higher dividend,” said the note.

“Maruti has done neither: dividend payout (including dividend tax) remained comparatively low, between 2.5 bln rupees to 3 bln rupees over the past three years.”      -Cogencis

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