Among the successful bidders, Life Insurance Corporation (LIC) got the highest number of shares of 1.3 crore, at a price of Rs 800 per share.
NEW DELHI: With its decision on Thursday to sell the remaining 10.27% stake in Maruti Udyog, the Centre has finally got out of the business of car making, netting a cool Rs 2,360 crore in the bargain.
Suzuki Motor Corp, which formed a joint venture with the government in 1983 to manufacture “people’s car” in this country, will finally be able to run Maruti without being answerable to a single government nominee on its board of directors for the first time since inception. It holds the majority 54.21% stake as on March 31 this year.
Announcing the government’s decision to offload 2.96 crore shares in Maruti to a clutch of financial institutions, heavy industries minister Sontosh Mohan Deb said: “We have sold the entire shares held by the government in Maruti at an average price of Rs 797 a share to raise Rs 2,360 crore.” The government had fixed a floor price of Rs 760 for the sale.
Among the successful bidders, Life Insurance Corporation (LIC) got the highest number of shares of 1.3 crore, at a price of Rs 800 per share. The country’s biggest insurer, which earlier held 8.1% in Maruti, would now control 12.5% and thus become the second-largest shareholder in the country’s largest car maker.
“The shares would, however, be transferred to LIC in September when the shareholders of Suzuki Motor Corp amend the Articles of Association. Suzuki officials have already given a go-ahead to the LIC increasing its stake in Maruti to over 10%,” said P V Bhide, secretary in the department of disinvestment.
In all, 32 financial institutions and mutual funds were allotted shares. State Bank of India was the second-most successful bidder, getting 83 lakh shares at Rs 775 per share. Thirty-six institutions and mutual funds had submitted financial bids but Franklin Templeton, SIDBI, Birla Sun Life and United India Insurance remained unsuccessful because of low bids.
Among banks, Corporation Bank and Exim Bank had submitted the highest bids at Rs 850 per share and were granted 5.88 lakh and 1.18 lakh shares respectively. The second-highest bidder was Bank of Baroda, quoting a price of Rs 826.
Among mutual funds, Reliance Mutual Fund and HDFC Mutual Fund were aggressive bidders, quoting Rs 790 and Rs 782 respectively. They were given 20 lakh and 10 lakh shares respectively.
SBI MF also got 49.76 lakh shares at Rs 775 per share and Punjab National Bank 12.29 lakh shares at Rs 815 per share.
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