The Indian government has revealed that they now plan to exit the Maruti Udyog Ltd venture by disinvesting their stake in the company by May this year.
Maruti is the largest automaker in the country and is partially owned by the Japanese automaker Suzuki. A senior government official said in a statement on this decision: “The expression of interests have come. We have to complete it (the share sale) by mid-May. Financial bids will be called soon.”
Heavy Industry Minister Santosh Mohan Dev added: “The floor price has not yet been finalized. Experts will determine the price and time.”
The government at this moment owns around 10.27 per cent residual stake in the Maruti Udyog Ltd (MUL).
Market sources claim that the government expects to get a premium price over the current prevailing market price for their stake in the company. They are expected to sell this stake to Indian public sector financial institutions, public sector banks and Indian mutual funds.
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