The government has decided to go slow on sale of its remaining shares in Maruti Udyog and complete the process by next fiscal as stock markets remain uncertain. "The financial bids for the government's remaining 10.28 per cent shares in Maruti will be invited next year," sources told PTI. They, however, said that the divestment process would be completed in the first half of 2007-08 itself.
Since the government announced the sale of its remaining equity in the country's largest car maker, its shares have witnessed wild swings. When the Cabinet Committee on Economic Affairs gave its go ahead to the sale on December 21, the company's shares were trading at Rs 926.
From the highs of Rs 979 a share during the trading session on January 4 this year, it fell to Rs 755 on March 7.
Apart from the Maruti scrip, the markets overall have seen erratic movements. The BSE Sensitive Index touched highs of 14,700 in February and today it closed at 12,430. The sale was expected when the markets stabilise, the sources added.
According to officials, the response to the notice inviting expression of interest for the 2,96,79,689 shares held by the government has been "comfortable". They, however, they did not disclose the number of EoIs received.
Only public sector banks, financial institutions and mutual funds, which are registered in India were allowed to participate in the bidding process. The last date for submitting expression of interest expired on March 9, 2007.
The sources said the process for short listing the eligible players who would be asked to submit financial bids would also be decided later. They said even if the sale process is to be completed next financial year, no one who has not submitted EoI would be allowed to enter the bidding war.
The Divestment Development
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