Govt offloads its stake in Maruti
Govt offloads its stake in Maruti
Thursday's sale brings to an end the Government's 23-year long association with the Maruti Udyog Limited.

New Delhi: The Government has finally exited country's largest carmaker Maruti Udyog by selling its residual 10.3 per cent stake sale for Rs 2,368 crore. The shares were sold at an average of Rs 797 per share.

LIC was the clear winner with more than one crore shares for a bidding price of Rs 800.

The company cornered 1.3 crore shares of the total 2.96 crore that were put on the block by the Government.

This could make LIC eligible for a Board position in Maruti, as it has now become the second largest shareholder after Suzuki Motor Corporation, which holds 54 per cent stake.

Other winners included PNB, HDFC Mutual Fund, State Bank of India Mutual Fund.

In all, 36 institutions and mutual funds had submitted financial bids for shares on offer but Franklin Templeton, SIDBI, Birla Sun Life and United India Insurance were not given any shares because of low bids.

Government has accepted 32 bids out of 36 bidders.

Corporation Bank and Exim Bank submitted the highest bids at Rs 850 per share. Both were granted 5.88 lakh and 1.18 lakh shares respectively.

The second highest bidder was Bank of Baroda, quoting a price of Rs 826, sources said.

Among mutual funds, Reliance Mutual Fund and HDFC Mutual Fund were aggressive bidders, quoting Rs 790 and Rs 782 apiece. They were given 20 lakh and 10 lakh shares respectively.

SBI MF also got 49.76 lakh shares at Rs 775 per share and Punjab National Bank 12.29 lakh shares at Rs 815 per share.

Thursday's sale brings to an end the Government's 23-year long association with the carmaker, in which it started as a majority shareholder.

Government had ceded control to Japanese partner Suzuki and sold 25 per cent of its share to the public in 2003 at Rs 125 a share.

Later in two transactions, it sold the remaining 18.27 per cent shares to financial institutions.

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