The Hindu Business Line : LIC gets lion's share in Maruti stake sale

New Delhi May 10 Life Insurance Corporation, State Bank of India, Reliance Mutual Fund, Punjab National Bank, HDFC Mutual Fund and Corporation Bank have together bagged over three-fourths of the 2.97 crore shares of Maruti Udyog Ltd (MUL) that was put on the block by the Government.

The Group of Ministers' nod on Thursday for sale of the government's residual stake of 10.27 per cent in MUL marks the exit of the Government from the car manufacturing industry. The Government would realise Rs 2,368 crore from this stake sale at an average price of Rs 797 per share. The MUL scrip closed at Rs 794.40 on the NSE on Thursday.

About 43 per cent of the shares that were on offer went to LIC, which had bid for 1.3 crore shares at Rs 800 per share.

This would take LIC's shareholding in MUL from the current 8.1 per cent to 12.60 per cent.

While SBI got 49.76 lakh shares at Rs 775 per share, Reliance Mutual Fund got 20 lakh shares at Rs 790 per share. PNB got 12.29 lakh shares at Rs 815 per share and HDFC Mutual Fund got 10 lakh shares at Rs 782 per share. Corporation Bank, which was the highest bidder at Rs 850 per share, got 5.88 lakh shares at this price.

"The Government earned a handsome return on Maruti (from this stake sale). Maruti is an example, which showed that Government could enter an industry at an appropriate time and exit at an appropriate time," Mr P. Chidambaram, Union Finance Minister, told reporters here on Thursday.

The proceeds of the stake sale may not go to the National Investment Fund. But the Finance Minister said that he has an open mind on this issue.

Mr P.V. Bhide, Secretary, Department of Disinvestment in the Finance Ministry, said that the 2.97 crore shares would be allotted to 32 of the 36 entities who had put in financial bids.

More Stories on : Cars | Disinvestment | Stocks | Maruti Udyog Ltd

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