Maruti Stake: Government inviting bidders
The Indian government is considering selling another part of their stake in the Maruti Company. They would be inviting expression of interest from financial institutions for this purpose. A market source stated: “The expression of interest from public sector financial institutions for 8.0 per cent (of 18.28 per cent) shares of government in Maruti will be invited next week.â€
Indian government reportedly plans to offload close to 10% of its share in the year 2006. They are taking the advice of the financial institutions SBI Capital Markets and Kotak Mahindra who have arrived at the floor price of the Maruti shares keeping the market price as a benchmark. Government expects this sale to generate revenues of around Rs 1,500 crore from the sale.
Market sources also claim that if the bidding process is successful, the government would take a similar approach to offload some other public sector companies. Maruti is doing very well in the Indian market with big success of their recently launched Suzuki Swift model. The company is looking at a better future with a new luxury sedan planned for launch next year.