Maruti Suzuki India intends to issue shares to Suzuki Motor Corporation (SMC) for the acquisition of its Gujarat unit at a price of Rs 10,421.

According to a filing with the markets, the company's Board of Directors approved the purchase of 100 percent of the Suzuki Motors Gujarat (SMG) shares owned by SMC in a meeting on October 17.

The related party transaction will be carried out by the preferential issue and allotment of MSI's equity shares to SMC for compensation other than cash equal to SMG's net book value, it added. 

"The consideration payable for purchase of 100 percent of the SMG's equity shares shall be discharged by way of issue and allotment of 1,23,22,514 equity shares having face value of ₹5 each, at a price of ₹10,420.85 per equity share, on a preferential basis," according to the statement.