The government may sell its remaining stake in Maruti before the end of this fiscal year, that’s before the end of March 31, 2007. It is to place the issue before the cabinet shortly. CNBC-TV18 finds out more.
Now the government has decided on the price on the basis of the company's NSE closing price on 26 June 2006, which was Rs 926.10. On that basis, the money is expected to be raised should be around Rs 2,700 crore.
But the government wants to put up a competitive bidding, so that they could get higher prices for the stake. They are expecting to raise more than Rs 3,000 crore.
For this, the government is expected to take the same route as they did in January 2006 by selling 8% of its scheduled stake at the cost of around Rs 1,800 crore. But this is not a stake sale to Suzuki, instead it is to the FIIs and public institutions.
The Department of Disinvestment has been advised to structure this offer as a private placement to domestic banks and financial institutions. So the government is expecting the banks and financial institutions to quote higher prices by taking the same route. SBI Caps and KMCL are likely to appointed as the merchant bankers.
Also, since the government has just 10.2% left in that company, there will be no public issue or no sale to the employees.
Now the government has decided on the price on the basis of the company's NSE closing price on 26 June 2006, which was Rs 926.10. On that basis, the money is expected to be raised should be around Rs 2,700 crore.But the government wants to put up a competitive bidding, so that they could get higher prices for the stake. They are expecting to raise more than Rs 3,000 crore.
For this, the government is expected to take the same route as they did in January 2006 by selling 8% of its scheduled stake at the cost of around Rs 1,800 crore. But this is not a stake sale to Suzuki, instead it is to the FIIs and public institutions.
The Department of Disinvestment has been advised to structure this offer as a private placement to domestic banks and financial institutions. So the government is expecting the banks and financial institutions to quote higher prices by taking the same route. SBI Caps and KMCL are likely to appointed as the merchant bankers.
Also, since the government has just 10.2% left in that company, there will be no public issue or no sale to the employees.
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