Govt receives 34 EoIs for Maruti stake divestment

New Delhi, Jan 4 | Updated: Jan 5 2006, 05:52am hrs
All 27 eligible banks and seven financial institutions have submitted expressions of interest (EoI) to acquire 8% shares of Maruti Udyog Ltd put on sale by the government.

All the 27 public sector banks, one financial institution and six insurance companies have submitted EoIs for acquiring shares in Maruti, sources said. Wednesday was the last day for submitting EoIs.

The offer by the government to sell 8% shares in Maruti has evoked strong interest among all the eligible public sector financial institutions and aggressive bidding is expected, sources added.

The financial institutions see the offer of sale as an opportunity to acquire a large number of shares of a well performing company at an attractive price.

If an institution would have tried to acquire bulk shares of Maruti in market it would have jacked up the prices of the companys shares. They see (the offer for sale) as a good opportunity to acquire a sizeable stake in the company, sources added.

Appetite For More
27 eligible banks, 7 financial institutions have submitted EoI
Wednesday was the last day for submitting EoIs
The financial institutions see the offer of sale as an opportunity to acquire a large number of shares of a well-performing company at an attractive price
The government wants the financial institutions to bid aggressively for a stake in Maruti.

If the bids are not up to the governments expectations and are above the indicative price, the government has reserved the right not to sell all the 2,31,12,804 equity shares on offer, sources said. The shares comes with a lock-in period of six months.

After the EoIs are examined by the government, financial bids would be called. The indicative price would be fixed on the basis of the price of the Maruti shares on the stock exchanges.

The government has kept the minimum bid value at Rs 10 crore and a single institution can bid for all the shares on offer.

PTI