Govt equity in MUL to come down to 25%

NEW DELHI: Disinvestment Minister Arun Shourie said on Monday that government stake in Maruti Udyog (MUL) will come down to around 25 per cent following an understanding with its joint-venture partner Suzuki Motors (SMC) over the proposed disinvestment in auto major. "Government equity in the auto major will stand around 25 per cent after a two stage disinvestment process involving a rights issue to be followed by a public issue," he told reporters after a meeting with Austrian Finance Minister Karl Heinz Gresser here. The Government currently holds 50 per cent stake in MUL while remaining equity is held by SMC. As per the agreement, government stake in the company would decline to 46 per cent once the rights issue is through. Shourie said his ministry had circulated a proposal to this effect for getting comments from other concerned ministries. The agreement specifies a one year lock-in period for the shares. On the issue of disinvestment in Indian Petrochemicals Corporation (IPCL) financial bids for which closed last month, he said valuation process continued, adding that bids had not been opened yet. He said no date had been fixed for next meeting of Cabinet Committee on Disinvestment (CCD) and that it would meet at the convenience of Prime Minister.