Indian Government might sell entire stake in Maruti Udyog
In an interesting development, the Indian government has revealed that they are considering selling their entire stake in the largest domestic automobile manufacturer Maruti Suzuki. Heavy Industry Minister Santosh Mohan Dev said in a statement about this decision of the government: “We have offered to the finance ministry that it can sell 10.24 per cent stake in Maruti that will be left (after the current round of divestment). It is up to them to decide.â€
The government is already in the process of selling around 8 per cent shares in the company and this deal has reached in its final stages. They have invited the bids from the public sector financial institutions for the stake. The last date for submitting to these bids is January 11. These bids would be opened up on this coming Thursday.
About Maruti Udyog:
Maruti Udyog Ltd is one of India’s leading automobile manufacturers. 18.28% of the company is owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an Initial Public Offering of 25% of the company in June of 2003.
Maruti Udyog Limited (MUL) was established in Feb 1981, though the actual production started in 1983. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various other countries (depending upon export orders). Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries.