New Delhi: The government will raise at least Rs2,250 crore for selling its residual stake in the country’s top carmaker Maruti Udyog Ltd to banks and financial institutions, as it has fixed a floor price of Rs760 a share.
As many as 36 banks, financial institutions and mutual funds have expressed interest in buying the stake. These include LIC, SBI, Corporation Bank and Union Bank of India, a government official told reporters here. “We hope to complete the sale by tomorrow,” he said.
The government will sell 2.96 crore shares, representing 10.27% stake in Maruti. Sources said bids of at least Rs10 crore will be invited for the purpose. According to sources, the bids are to be opened on 9 May, but it is postponed for 10 May as Heavy Industry Minister Sontosh Mohan Deb, whose ministry holds the stake, is away in Guwahati.
The government had invited Expressions of Interest for the stake in February, but deferred selling due to volatility in stock markets. The other reason for the delay was that the government was awaiting Suzuki’s nod on whether LIC could be allowed to increase its holding beyond 10%.
With Suzuki giving a go ahead, LIC would be able to participate in the sale aggressively. LIC already holds over 8% stake after buying more than half of the shares sold by the government last year. When government sold 8% shares in Maruti, it had put a condition that no financial institution would be allowed to increase its stake beyond 10% through participation in the disinvestment process.