The Hindu : Business : Keen bidding for Govt. stake in Maruti

Online edition of India's National Newspaper
Thursday, May 10, 2007
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Keen bidding for Govt. stake in Maruti

NEW DELHI: The Central Government can raise about Rs. 2,250 crore by offloading its residual 10.27 per cent stake in Maruti Udyog Ltd. (MUL), with bidders offering as high as Rs. 850 against the floor price of Rs. 760 a share.

As many as 36 banks, financial institutions and mutual funds came up with bids ranging between Rs. 765 and Rs. 850, an official told reporters here.

Bids were received for a total of 3.59 crore shares against 2.96 crore shares that were on offer.

This way, the Government is likely to raise money in the range of Rs. 2,264-2,516 crore. At the floor price, the Government would have mopped up Rs. 2,250 crore.

Those bidding for the stake included the Life Insurance Corporation (LIC), State Bank of India, Corporation Bank and Union Bank of India, the official said.

The highest bid came from Corporation Bank, followed by the LIC, which offered Rs. 850 a share for one crore shares, he said. Maruti's share closed at Rs. 802.85 on the BSE.

"We hope to complete the sale by Thursday,'' the official said.

PTI

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