| The government now wants to sell its remaining 10.28 per cent stake in Maruti Udyog Ltd. The Cabinet has already decided to sell its 8 per cent equity in Maruti to financial institutions, and with no opposition from the Left, it wants to completely exit the company at a later date.
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| At present, the government’s equity in Maruti is 18.28 per cent. “We are open to the sale of the remaining shares in Maruti and exit the company,” Heavy Industry Minister Santosh Mohan Dev said on the sidelines of a conference of public sector chief executives.
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| The sale of 8 per cent equity, which is restricted to public sector banks and financial institutions, is expected to net over Rs 1,100 crore.
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| Officials at disinvestment department said advisors for the sale would be appointed soon. The sell-off process would to be completed in the next six months, leaving the government with 10.28 per cent equity in the company, which it would sell at a later date.
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| The way to Maruti sell-off looks clear. This is despite the Centre’s inability to divest its 10 per cent stake in Bhel, owing to pressures from the Left. The CPI (M) has demanded a formal letter of assurance from the government that it would not disinvest the Navratnas.
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| The government also wants to garner about Rs 400 crore through sale of its entire 27 per cent in Tide Water Oil, a subsidiary of Andrew Yule and Company, to Oil and Natural Gas Corporation. ONGC already has a stake in the company.
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“There is nothing wrong in one public sector company taking over another,” he said. It is also looking at divesting the electrical equipment business of Andrew Yule Ltd.
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| Exit Route
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Govt has already decided to sell 8 per cent
At present, its equity in Maruti is 18.28 per cent
Sale expected to fetch over Rs 1,100 crore
Advisers for the sale to be appointed soon
Selloff to be completed in six months |
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