Government to sell remaining stake in Maruti

Mumbai: The government has decided to completely exit Maruti through the sale of its residual 10.27-per cent stake in the auto major. The sale would fetch over Rs2,700 for the exchequer under the prevailing stock prices.

Japanese car giant Suzuki holds a majority 54.2 per cent stake in the company.

The cabinet committee on economic affairs (CCEA) gave the go-ahead for the sale of government's remaining 2,96,79,689 shares (as of September 31, 2006) in Maruti, the second such exercise this year.

The government had in January this year raised Rs1,567 crore from sale of eight per cent equity in the car major to banks and financial institutions at an average price of Rs678.24 a share.

Shares of Maruti were trading at Rs940, up 1.84 per cent, in late afternoon trading on the Bombay Stock Exchange (BSE).

The Maruti stock has gained 35 per cent since its stake sale in January with the Sensex hitting record highs. It is likely that the remaining stake of 10.27 per cent may fetch double the amount the government raised from the January sale.