India’s government has sold part of its stake in Maruti Udyog (MUL), the country’s largest passenger car manufacturer which makes Suzuki-designed models.
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Significantly, the 8% stake was sold for more than the current Maruti share price and fetched INR15.676bn.
The buyers were eight state financial institutions including the Life Insurance Corporation of India (LIC) which already owns a 3.31% stake in MUL. LIC, which paid INR11.46bn for 23.1 million shares, now has a 9% holding.
The second largest purchaser was the State Bank of India which acquired 3.93m shares.
The government had set a floor price of INR620 a share though the average transaction price was INR678.24 a share.
Finance Minister P Chidambram said the government would completely divest Maruti at a suitable time by selling its remaining 10.28% stake.
Twenty shares each were allotted to Maruti employees.
Deepesh Rathore/Tilak Swarup
