The Hindu Business Line : Govt invites bids for its residual Maruti stake

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New Delhi Feb. 22 The Government will be accepting bids in March for its residual stake in Maruti Udyog Ltd. The stake is valued at approximately Rs 2,610 crore. Mutual funds, State-run financial institutions and banks must submit initial offers for the 10.27 per cent stake in Maruti by March 9, according to a Department of Disinvestment notice issued on Thursday.

The Government had raised Rs 1,567 crore in January last year by selling an eight per cent stake in Maruti to the State-owned banks, insurance and financial companies.

The 10.27 per cent stake will be sold through competitive bids by eligible institutions, according to the advertisement.

The Ministry had in December specified that SBI Capital Markets Ltd and Kotak Mahindra Capital Company Ltd have been retained as advisors for the stake sale.

SBI Capital Markets and Kotak had advised the Government in the previous eight per cent stake sale. The Government will also have the discretion to sell only a part of the total shares on offer for sale, according to the advertisement.

HZL referred to GoM

Meanwhile, the Union Cabinet today referred the issue of selling the Government's 30 per cent stake in Hindustan Zinc Ltd (HZL) to a Group of Ministers for a final decision.

"Like other issues, we have referred the issue on call option in HZL to the GoM," the Union Finance Minister, Mr P. Chidambaram, told reporters after the end of the Cabinet Committee of Economic Affairs meeting here.

Currently, Sterlite holds 64.92 per cent stake in HZL, while the Government holds 29.54 per cent. The balance 5.54 per cent is held by FIs and the public.

On Thursday, Maruti Udyog shares closed at Rs 879.20 on BSE.

More Stories on : Cars | Disinvestment | PSU | Cars | Maruti Udyog Ltd

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