Thursday, May 10, 2007

Govt exits Maruti, sells stake for Rs 2,360 cr

The government today exited the country's largest car maker Maruti Udyog by selling its residual stake for Rs 2,360 crore to a clutch of financial institutions led by Life Insurance Corporation (LIC).

The government has sold all the share held by itself for and average price of Rs 797 per share to raise Rs 2,360 crore.Maruti shares today closed at Rs 764.65 on the bourses. The government had fixed a floor price of Rs 760 for the sale.

The government had offered 2.96 crore shares in the company representing 10.27% stake. LIC got all the 1.3 crore shares it had bid for at a price of Rs 800 per share. The country's biggest insurer, which earlier held 8.1% now controls 12.5%, and has become the second-largest shareholder in the company.

In all, 32 financial institutions and mutual funds were alloted shares. State Bank of India was the second most successful bidder and got 83 lakh shares at Rs 775 per share.

Read more in the The Business Standard article.

No comments: