Suzuki's investment in Maruti garnered 2,160x returns in 42 years. Here’s the math
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Decoded
Suzuki’s Rs 5/share investment in Maruti 42 years back, is now valued at Rs 10,800/share. Here’s the history of Suzuki’s investment in Maruti through the years (Source: ETNow)
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The History
In 1981, the government formed a JV with Japan's Suzuki Motor. Suzuki invested about Rs 20 crore for its 26% stake in the JV. Back then - Maruti Udyog - was valued at Rs 77 crore.
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Growing Stake
Suzuki raised its stake in JV in several tranches before the IPO. By 1992, it owned around 50% stake, and right before the IPO, Suzuki owned close to 54.2%.
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Going Public
Maruti Udyog went public in 2003, at that time the Indian government divested a 25% stake at Rs 125 per share. At issue price, the company was valued at around Rs 3,600 crore.
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Govt Offloaded Stake
In May 2007, the Government of India fully exited from Maruti selling its 10.3% stake for Rs 2,360 crore.
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Share Price Through Years
> Suzuki subscribed shares valued at Rs 100 in 1981.
> The current share price of Maruti Suzuki at Rs 10,800.
> In 42 years, this translates into a gain of 2,160 times.
> Maruti's IPO issue price was Rs 125 in 2003.
> Since the IPO, Maruti's share prices have gained 86 times.
> The current share price of Maruti Suzuki at Rs 10,800.
> In 42 years, this translates into a gain of 2,160 times.
> Maruti's IPO issue price was Rs 125 in 2003.
> Since the IPO, Maruti's share prices have gained 86 times.