Indian government renews privatization drive

Government offloads second Maruti stake since June 2003.

The Indian government raised Rs15.67 billion $355 million yesterday January 12 from the sale of an 8% stake in passenger car manufacturer Maruti Udyog. Kotak Mahindra Capital Corporation and SBI Capital Markets advised the government on the sale, which will bring the government's residual stake down to 10.24%.

To ensure transparency the 23.11 million share sale was structured as a controlled auction with the floor price set at an approximately 10% discount to Maruti's traded price on the day the auction was launched - Rs620. The scrip closed at Rs654.

Only public sector banksfinancial institutions including insurance companies were invited to bid for the shares and...

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