Search the Internet          Tips  Sites: Finance, Investment

Govt open to selling Maruti stake to Suzuki

Indian Heavy Industries Minister Manohar Joshi on Tuesday said that the government was open to sell its stake in the state-run carmaker Maruti Udyog Ltd. to its joint venture partner Suzuki Motor Company.

The valuation of the company, which is proposed to be privatised, will be completed shortly, Joshi said.

"Valuation of Maruti is underway and expected to be over soon, " Joshi told reporters after inaugurating Auto Expo 2002.

He said the government would then approach domestic financial institutions for renouncing its share of rights issue to them.

If the financial institutions do not show interest in picking up equity, the government will renounce its share in favour of Suzuki Motor Corporation, Joshi said.

Of the three valuers for Maruti including SB Billimoria, Ernst & Young and KPMG, one each has been appointed by the government, Suzuki Motor Corporation and the third by mututal consent.

The Rs 4 billion rights issue will be used for financing auto major's expansion programme.

The company turned around by posting a net profit of Rs 300 million during the first half of this fiscal.

MUL has also improved its sales turnover by 4 per cent at Rs 46.65 billion during April-September 2001-02 over Rs 44.90 billion in the year-ago period.

Tell us what you think of this report