Government to sell residual stake in Maruti Udyog

11 May, 2007: Banks, FIs and mutual funds, numbering as many as 36 have come forward to buy the government’s residual stake in car maker Maruti Udyog.

According to industry reports, the Central government intends to mop up close to Rs 2,250 crore by selling its residual holding in the country’s top car manufacturing company. The floor price, it added, has been fixed at Rs 760 a share.

It is learnt that companies like LIC, SBI, Corporation Bank and Union Bank of India are the ones in the fray to pick the pie. The report revealed that the government will sell close to 2.96 crore shares, representing 10.27 per cent stake in Maruti. Bids of at least Rs 10 crore are to be invited in his regard.

It may be recalled that the Centre had invited expressions of interest for the stake in February. However, following volatility in the bourses, it had put off the sale. Besides, Suzuki's nod on whether LIC could be allowed to increase its holding beyond 10 per cent was being awaited. This hurdle however has been cleared with Suzuki showing a green signal.

It is a known fact that the Life Insurance Corporation holds over 8 per cent stake in Maruti Udyog.