India Govt To Divest In Maruti Udyog

Govt. to divest balance equity in Maruti Udyog Expects to realise Rs. 2,800 cr. from sale of 2.96 cr. shares Special Correspondent

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Minister confident of getting Left nod

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Mode of selling the shares to be decided

NEW DELHI: The Union Govern-

ment will decide on disinvesting its remaining 10.27 per cent shareholding stake in Maruti Udyog Ltd. (MUL) this month. Heavy Industry Minister Santosh Mohan Dev said the decision would be taken this month and implementation would be done next month. Speaking to reporters on the sidelines of the directors’ conclave on corporate governance organised by the Standing Conference of Public Enterprises and the Academy of Corporate Governance, he said a final

note had been moved for the consideration of various ministries and coalition partners. He expressed confidence that the coalition partners would not object to it. In addition, he said that he would be holding meetings with leaders of Left parties in a day or two to discuss the issue. Mr. Dev said a group of officers, headed by a Finance Ministry official, would decide on the mode of selling

the shares so that the right price could be arrived at by the Government. Competitive bids were expected to be invited for divesting the equity on the same lines as done in January when 8 per cent stake was sold to Suzuki Motor Corporation for Rs. 1,567.60 crore. It may be recalled that the government had handed over the majority shareholding to Suzuki in 2002 and divested 27 per cent of its stake a year later through an initial public offer. It is estimated that the Government holding of 2.96 crore shares, could fetch around Rs. 2,793 crore at current prices for the Exchequer.