RxPG News XML Feed for RxPG News   Add RxPG News Headlines to My Yahoo!  

Medical Research Health Special Topics World
 Latest Research 
 Clinical Trials
 Infectious Diseases
 Public Health
 Alternative Medicine
 Sports Medicine
 Medical News 
 Awards & Prizes
 Special Topics 
 Odd Medical News
  India Business
  India Culture
  India Diaspora
  India Education
  India Entertainment
  India Features
  India Lifestyle
  India Politics
  India Sci-Tech
  India Sports
  India Travel
 Reservation Issue
 Overseas Indian Doctor

Last Updated: May 20, 2007 - 10:48:48 AM
News Report
India Business Channel

subscribe to India Business newsletter
India Business

   EMAIL   |   PRINT
Indian government exits Maruti car venture with Suzuki
May 10, 2007 - 8:04:11 PM
Suzuki still has more than 50 percent stake in the car venture that has been the forerunner of the passenger car revolution in the country.

Article options
 Email to a Friend
 Printer friendly version
 India Business channel RSS
 More India Business news
[RxPG] New Delhi, May 10 - The Indian government Thursday approved the sale of its residual stake of 10.27 percent in the country's largest carmaker Maruti Udyog Ltd. - in which Japanese carmaker Suzuki Motor Co. has a majority stake.

This marks the government's complete exit from the car project that had started as a 50:50 joint venture with Suzuki to bring an affordable small car to the Indian consumer.

The government will receive Rs.23.68 billion - through sale of its stake to 32 banks, insurance companies and mutual funds. It had received 36 bids in all for the purchase of its stake.

An empowered group of ministers, headed by Finance Minister P. Chidambaram, approved the sale of its stake in MUL for Rs.796 rupees per share.

According to industry sources, the government has sold almost 10 million shares to LIC for Rs.800 per share, the largest to any bidder. LIC, which earlier held 8.1 percent in MUL, would now command 12.5 percent stake.

Amongst other successful bidders, Reliance Mutual Fund and HDFC Mutual Fund would receive 2 million and 1 million shares respectively, officials said. In addition to this, SBI Mutual Fund received 4.98 million shares along with 1.2 million to Punjab National Bank.

Bidders who failed to get Maruti's shares are Templeton, SIDBI and Birla Mutual Fund.

On Wednesday, the government received the 36 bids with bids ranging between Rs.765 to Rs.850 a share against a floor price of 760 rupees set by the government.

In February, the government had asked for expressions of interest for the stake but it was later deferred for an approval from Suzuki.

Suzuki still has more than 50 percent stake in the car venture that has been the forerunner of the passenger car revolution in the country.

The Maruti saga began in the 1970s when Suzuki chairman O. Suzuki responded to the invitation of then prime minister Indira Gandhi to set up a car factory in India in collaboration with her favourite son Sanjay Gandhi's prototype small car project. Sanjay Gandhi later died in an air crash in 1980.

Related India Business News
11 Indian firms to set up manufacturing units in China
Draft bill to amend Companies Act under preparation
Spanish firm prefers India to China for joint venture
Only foreign vacations please: Outbound travel booms
New twist in Gurgaon SEZ protest
Indian Inc leaders to head for Cannes
SBI Mutual Fund to tap infrastructure opportunities
Probe ordered on tax breaks of Tendulkar, Gavaskar
BIG 92.7 FM to promote 'Jhoom Baraabar' songs
Sun Micro, Tech Mahindra join hands for IPTV services

Subscribe to India Business Newsletter
E-mail Address:

For any corrections of factual information, to contact the editors or to send any medical news or health news press releases, use feedback form

Top of Page

© All rights reserved 2004 onwards by RxPG Medical Solutions Private Limited
Contact Us