The government is set to divest its 10.27% equity stake in Maruti Udyog (Q, N,C,F)* (MUL) to domestic financial institutions (FIs) and banks, reports Economic Times.
The proposal is expected to come up before the cabinet for approval soon, sources said.
By offloading this residual stake, the government expects to fetch around Rs 30 billion. As per National stock exchange (NSE) closing figures on Monday, the government`s 29,679,689 equity shares in MUL are valued at Rs 28.10 billion or Rs 946.75 per share.
According to sources, the price of equity shares is yet to be determined. After the cabinet clears the proposal, the government will appoint a group of secretaries to fix the MUL share`s floor price.
Domestic FIs and banks will have to bid above the floor price to acquire the 10.27% stake.
The disinvestment of the 10.27% will be done in the same manner that the government divested its 8% equity in the company early this year. While selling its 8% stake in MUL to domestic FIs and banks, the government had offered up to 20 shares each to MUL employees at a discounted rate.
According to sources, it is expected that employees may get a similar offer this time too.
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