The Cabinet Committee on Economic Affairs gave the go-ahead to the sale of government's remaining 2,96,79,689 shares (as on September 31, 2006) in Maruti, the second such exercise this year.
Japanese car giant Suzuki has a majority 54.2 per cent stake in the company.
The government had in January this year mopped up Rs 1,567 crore (Rs 15.67 billion) from sale of eight per cent equity in the car major to banks and financial institutions at an average price of Rs 678.24 share.
Maruti shares were trading at Rs 940, up 1.84 per cent, in late afternoon on the BSE on Thursday.
The record levels of Sensex have ensured that it gets around double that amount from its remaining 10.27 per cent stake as the stock price has risen over 35 per cent from the sale price in January.
Today's decision marks the end of government's gradual withdrawal from the auto major, which commands a staggering over 50 per cent share in the Indian car market.
In June 2003, the government sold a 27.5 per cent stake in Maruti to the public at a price of Rs 125 per share to garner Rs 993 crore (Rs 9.93 billion).
Maruti Udyog was established in February 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system.
Suzuki was chosen from seven prospective partners worldwide and a licence and Joint Venture agreement was signed between the Government and the Japanese company in October 1982.
© 2024 Rediff.com -