Govt invited bids for Maruti stake; to raise Rs 2700 cr
The process of sale is expected to be completed in this fiscal itself as the last date for Expression of Interest has been kept as Mar 9.business Updated:
The government on Thursday invited bids from public sector financial institutions and mutual funds for its remaining 10.27 per cent stake in Maruti Udyog Limited that would bring in Rs 2,700 crore to the exchequer.
The process of sale is expected to be completed in this fiscal itself as the last date for Expression of Interest has been kept as March 9.
The sale of the remaining 2,96,79,709 shares in the company would fetch the government Rs 2,700 crore based on the current price of MUL's shares on the bourses. MUL shares are currently trading at Rs 905, up 0.48 per cent from the previous closing.
The money raised from the sale would go to the government and not the National Investment Fund (NIF) as MUL is no longer a public sector fund.
Last year the government raised Rs 1567 crore from selling its eight per cent stake in the company which went to the exchequer and not NIF that was created to receive funds from the sale of government shares in state-owned companies.
According to Department of Disinvestment website, the bidders would have to place a minimum bid of Rs 10 crore for the stake.
After the EoI, the eligible institutions would be invited to submit financial bids, officials said.
First Published: Feb 22, 2007 12:43 IST