Maruti pie sale to net Rs 1,000 cr

The government is likely to earn more than Rs 1,000 crore (Rs 10 billion) by selling 8 per cent of its shares in Maruti Ltd, as against Rs 993 crore (Rs 9.93 billion) it mopped up by offloading 27.5 per cent of its shares in the automobile giant in June 2003, thanks to the market dynamics following the stock market boom.

The stock market barometer Sensex, which hovered around the 3,500 point mark two years ago, is currently placed at over 7,800 points.

The difference is that the shares of Maruti would now be sold only to public sector financial institutions as against sale of its equity through initial public offering route in 2003.

Govt to sell 8% equity in Maruti

The divestment would be undertaken through a competitive bidding with the market price as the benchmark, Defence Minister Pranab Mukherjee said after a meeting of the Cabinet Committee on Economic Affairs.

With the current market price of over Rs 513, the 8 per cent divestment would fetch around Rs 1,092.69 crore (Rs 10.92 billion). Today, Maruti share prices appreciated by over Rs 28 on the BSE.

The government had earlier held 45.8 per cent of stake in MUL, comprising 13.23 crore shares of Rs 5 each.