The government is likely to mop up about Rs 950 crore to Rs 1,000 crore (Rs 9.5-10 billion) from the public offer of shares in car-maker Maruti Udyog Ltd at Rs 122-125 a share.
A meeting of inter-ministerial group on divestment in Maruti was held in New Delhi on Friday morning to finalise and recommend the price for the public offer, through which the government was divesting 25 per cent equity in the car joint venture with Japan's Suzuki Motor Corporation.
Buoyed by the success of the IPO, which was oversubscribed about 10 times by the closing on Thursday, the IMG is understood to have favoured a much higher allocation of shares to individual investors as against the stipulation of a minimum 25 per cent for this category with the intention of maximising the share holding in the company that has more than 50 per cent share of India's car market.
Sources associated with the MUL divestment process said the government might allocate 46-48 per cent equity to individual investors including 15 per cent to high net worth investors who are seeking more than 1,000 shares each.
IMG, attended by officials of the ministries of heavy industry and divestment, MUL Managing Director Jagdish Khattar and other executives of the car company as also representatives of the merchant bankers and legal advisors, is understood to have sent its recommendations to the Divestment Minister Arun Shourie.
