Govt to divest 10% residual stake in Maruti to FIs, banks
The government is all set to divest its 10.27% equity stake in Maruti Udyog Ltd (MUL) to domestic financial institutions (FIs) and banks. The proposal is expected to come up before the Cabinet for its approval soon, official sources said.
By offloading this residual stake, the government’s expects to fetch around Rs 3,000 crore. As per National Stock Exchange (NSE) closing figures on Monday, the government’s 29,679,689 equity shares in MUL is valued at Rs 2,810 crore or Rs 946.75 per share.
The price of equity shares is yet to be determined. After the proposal gets Cabinet clearance, the government will appoint a group of secretaries to fix the MUL share’s floor price, sources said. Domestic FIs and banks will have to bid above the floor price to acquire the 10.27%.
The disinvestment of the 10.27% will be done in the same manner the government divested its 8% equity in the company early this year. While selling its 8% stake in MUL to domestic FIs and banks, the government had offered up to 20 shares each to MUL employees at a discounted rate.
It is expected that employees may again get a similar offer this time too.According to sources, SBI Caps and KMCL are likely to be appointed as merchant bankers.
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