Maruti Suzuki India (MSIL) shares rose 2% to Rs 8,700.65 on the BSE in Wednesday trade after the company said its promoter Suzuki Motor Corp had bought more than 300,000 shares in the company worth about Rs 300 crore through the open market.

According to information disclosed by SAST to the stock exchange, Suzuki Motor Corporation, the promoter of MSIL, purchased 345,000 shares of the company from the open market from March 10 to 13, 2023.

The stake acquisition represents a 0.11% stake, and the total stake acquisition is Rs 296 crore. After the equity acquisition, the promoters’ stake in the company increased slightly from 56.37% to 56.48%.

According to ICICI Securities, this is positive sentiment for the company and a measure of confidence. Suzuki last increased its stake by 0.1% between June and September 2020. With impressive model launches in the SUV segment, a healthy order backlog and the low-penetration nature of the domestic PV market, the brokerage expects MSIL to report a healthy financial profile.

MSIL has underperformed the market over the past six months through Tuesday, falling 8% compared with a 3% drop for the S&P BSE Sensex.