Maruti Suzuki's shares tank 9 per cent

Mumbai: Shares of Maruti Suzuki India on Thursday tanked over 9 per cent, eroding as much as Rs 3,183 crore from its market capitalisation in just a single trading session after production at its Manesar plant was affected following violence between workers and the management.

The stock closed at Rs 1,117.35, down 8.74 per cent over its previous closing price on the BSE. In just a single trading session market capitalisation of the company got eroded by Rs 3,183 crore, at Rs 32,188 crore from Rs 35,371 crore Wednesday.

Shares of the company opened weak following violence at its Manesar plant and plunged more than 9 per cent during the day to Rs 1,111.80 on the BSE.

One person was killed and at least 55 were injured in a clash between workers and the managerial staff at the Maruti Suzuki's Manesar plant yesterday, leading to stoppage of work.

On the National Stock Exchange the stock saw an intra-day low of Rs 1,110, down 9.50 per cent over last closing price. The stock has lost as much as 28.18 per cent from its 52- week high of Rs 1,428.20 on March 16.

Haryana Industry Minister Randeep Singh Surjewala said so far 100 workers have been arrested in this regard. While workers alleged that violence broke out after a supervisor made rude remarks against a dalit worker, management sources said some of the senior officials at the plant were severely beaten up.

Labour unrest is not a new phenomenon in Manesar plant which mainly produces Swift. The factory had witnessed three such instances last year causing a total production loss of about 83,000 units.

Maruti Suzuki India (MSI) has said that the Manesar plant has been shut down and no production would take place. The plant has an annual capacity of 5.5 lakh units and rolls out Swift, Dzire, SX4 and A-Star models.

The latest labour issue comes at a time when Maruti is moving towards recovery after suffering three strikes last year. The company had posted 20.30 per cent jump in total sales at 96,597 units in June when the industry is still suffering from sluggish demand.