Buoyed by the overwhelming response received by Maruti Udyog Ltd's maiden public offer of 7.2 crore (72 million) shares, the government on Thursday said it was a vindication of its divestment "policies and approach".
"I am delighted with the response. It is also a vindication of the government's policies and approach to divestment," Divestment Minister Arun Shourie told PTI on phone from Mumbai.
The issue for divestment of 25 per cent government equity in the car joint venture MUL with Japan's Suzuki Motor Corporation was oversubscribed within three hours of its opening and bids totalling 7.89 crore (78.9 million) shares were received on day one.
"The market reacts best when there is a strong strategic partner in place -- like Suzuki in this case," a jubilant Shourie said.
This is the first divestment during the current financial year. The government was pegging its hopes on other issues based on the success of Maruti's sale. Suzuki had committed to underwrite the issue at Rs 115 a share, which became the floor price for the IPO.
A day ahead of the issue, Shourie had told reporters that Maruti IPO could be a trendsetter for proposed offerings in the case of Nalco and Bharat Petroleum Corporation Ltd later in the current financial year.
