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Govt equity in Maruti to drop to 25% post-selloff

Divestment Minister Arun Shourie said on Monday that the government stake in Maruti Udyog Ltd will come down to around 25 per cent following an understanding with its joint-venture partner Suzuki Motors over the proposed divestment in the auto major.

"The government's equity in Maruti will stand at around 25 per cent after a two-stage divestment process involving a rights issue to be followed by a public issue," he told reporters in New Delhi.

The government currently holds 50 per cent stake in MUL, while the remaining equity is held by Suzuki.

As per the agreement, the government's stake in the company would decline to 46 per cent once the rights issue is through.

The agreement specifies a one-year lock-in period for the shares.

Shourie said that his ministry has circulated a proposal to this effect for getting comments from other concerned ministries.

On the issue of divestment of the Indian Petrochemicals Corporation, financial bids for which closed last month, he said that the valuation process is still on and that bids had not been opened yet.

He said no date had been fixed for the next meeting of the cabinet committee on divestment. He said the CCD would meet at the convenience of the prime minister.

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