Govt approves share allotment to Maruti staff
Govt has approved a proposal to allot up to 20 shares each to employees of leading car maker Maruti Udyog Ltd.india Updated: Feb 22, 2006 12:41 IST
Close on the heels of garnering Rs 1,568 crore from sale of its 8 per cent equity in Maruti Udyog Ltd, the Government has approved transfer of 0.01 per cent shareholding in favour of the employees of India's largest car marker for Rs 2.625 crore.
The Cabinet Committee on Economic Affairs on Tuesday evening approved sale of 39,777 equity shares in MUL to its employees, after which the government holding in the company would fall to 10.27 per cent from the current 10.28 per cent.
"CCEA approved the proposal to give 39,777 equity shares in favour of MUL employees who had responded to our offer of 20 shares per employee at the rate of Rs 660 per share," Finance Minister P Chidambaram told reporters on Wednesday.
In January this year, Government sold 8 per cent of its equity in Maruti Udyog Ltd to public sector financial institutions and public sector banks. At that time, it was also announced that Government would offer up to 20 shares each to all employees of MUL at a price of Rs 660 per share ie, the lowest cut off price at which the sale was concluded.
"There will be no lock in period (for sale of the shares in secondary market). We will complete the transaction in February or latest by early March," he said.
Out of 3596 eligible employees of MUL, 1994 employees had conveyed their willingness to avail of this offer, he said.
"The disinvestment receipt realised through this transaction will be Rs 2.625 crore. After this disinvestment, the shareholding of Government in MUL would come down from 20.28 per cent to 10.27 per cent," Chidambaram said.