Maruti Suzuki India’s board today approved the allotment of the company’s 12.3 million shares to Japanese parent company Suzuki Motor Corp on a preferential basis for acquiring the Gujarat plant.

In July, Maruti Suzuki announced its plans to terminate the contract manufacturing agreement with Suzuki Motor Gujarat and fully acquire it from Suzuki Motor Corp.

The shares with a face value of 5 rupees were allotted at a price of Rs 10,420.85 each and aggregate to Rs 12,841.1 crore­. Maruti Suzuki’s shares closed at Rs 10,469.35 rupees on the National Stock Exchange today.

Following the allotment, Suzuki Motor Corp’s stake in Maruti Suzuki will increase to 58.19% from the current 56.48%.

Maruti Suzuki, India’s largest passenger vehicle maker, looks to streamline its production with the acquisition of Gujarat plant.

With this acquisition, Maruti Suzuki will now directly manufacture its first electric vehicles as its production is planned at the Gujarat unit. The automaker expects to launch its first electric vehicle in 2024-25.