Search the Internet          Tips  Sites: Finance, Investment

India plans to sell 50% Maruti stake to FIs

The Indian government is planning to divest some of its stakes in car maker Maruti Udyog Ltd, an equal venture with Japan's Suzuki Motor Corp, Business Standard newspaper reported on Saturday.

The government would sell about 50 per cent stakes in Maruti to banks and term-lending financial institutions, but has not decided whether the sales would include some of Suzuki's holdings, the paper said.

The government has offered a 5 per cent stake in Maruti Udyog to 10 banks and institutions, respectively, the paper said.

Maruti had enjoyed a monopoly until competitors entered India under a reform programme launched in 1991.

The company still holds more than half of market share.

Tell us what you think of this report