Government to invite financial bids for Maruti stake in May
21 Apr 2007
Mumbai:
The government will invite financial bids for sale of
its residual 10.27 per cent stake in Maruti Udyog Ltd
next month. "Financial bids for the 10.27 per cent stake in Maruti will be invited in May," official sources said.
The government will sell around 2.96 crore shares in the country''s top carmaker. Based on the current price of Rs776.30 , the government could raise around Rs2,300 crore by the stake sale.
The government had invited expressions of interest (EOI) from potential bidders in February, but deferred a decision in view of the high volatily in stock markets. Finance minister P Chidambaram had said in March this year that the sale of residual government stake in Maruti Udyog was likely in 2007-08.
More than 20 public sector banks, financial institutions and mutual funds had shown interest in acquiring the government''s stake when the EOIs were sought, sources pointed out.
Japan''s Suzuki Motor Corporation holds 54.2 per cent equity in Maruti Udyog while banks, financial institutions and the public hold the remaining stake.