New Delhi: The government on 10 May exited the country’s largest car maker Maruti Udyog Ltd, selling its residual stake for Rs2,360 crore to a clutch of financial institutions led by Life Insurance Corporation.
“We have sold the entire shares held by the government in Maruti at an average price of Rs797 a share to raise Rs2,360 crore,” Minister of Heavy Industries and Public Enterprises Sontosh Mohan Dev told newspersons after the bids were opened.
Maruti shares closed at Rs764.65 on the bourses on 10 May. The government had fixed a floor price of Rs760 for the sale.
The government had offered 2.96 crore shares in the company, representing 10.27% stake. Of this, LIC got all the 1.3 crore shares it had bid for at a price of Rs800 a share. The country’s biggest insurer, which earlier held 8.1%, now controls 12.5 per cent and has become the second-largest shareholder in the company.
“The shares would, however, be transferred to LIC in September when the shareholders of Suzuki Motor Corporation, which owns the company, amend the Articles of Association. Suzuki officials have already given a go ahead to LIC increasing its stake in the Maruti to over 10%,” P V Bhide, secretary in the department of disinvestment said.
In all, 32 financial institutions and mutual funds were alloted shares. State Bank of India was the second most successful bidder and got 83 lakh shares at Rs775 per share.