The Centre, on Thursday, exited the country’s largest car maker Maruti Udyog Ltd, selling its residual stake for Rs 2,360 crore to a clutch of nearly 32 financial institutions led by Life Insurance Corporation.
“We have finally sold the entire shares held by the government in Maruti at an average price of Rs 797 a share to raise Rs 2,360 crore,” Minister of Heavy Industries & Public Enterprises Sontosh Mohan Deb told newspersons after the bids were opened.
The government had offered its residual share of 10.27 per cent (numbering 2.96 crore shares) in the MUL for sale and invited bids from financial institutions.
The government had fixed a floor price of Rs 760 for the sale. Maruti shares closed at Rs 764.65 on the bourses. The government had fixed a floor price of Rs 760 for the sale.
The government had offered 2.96 crore shares in the company, representing 10.27 per cent stake.
Of this, LIC got all the 1.3 crore shares it had bid for at a price of Rs 800 per share. The country’s biggest insurer, which earlier held 8.1 per cent, now controls 12.5 per cent and has become the second-largest shareholder in the company.
With the purchase of 1.3 crore shares, the LIC, which is already holding 8.1 per cent stake in MUL, now controls 12.5 per cent.

Second largest shareholder
Thus LIC has become the second-largest shareholder in the MUL, in which SMC holds the majority shares with full management control of the  company.
“The shares would, however, be transferred to LIC in September when shareholders of Suzuki Motor Corporation, which owns the company, amend the Articles of Association. Suzuki officials have already given a go ahead to LIC increasing its stake in the Maruti to over 10 per cent,” P V Bhide, Secretary in the department of disinvestment said.
The SMC has already given a go ahead to LIC increasing its stake in the MUL to over 10 per cent, Mr Bhide said. In all, 32 financial institutions and mutual funds were alloted shares. State Bank of India was the second most successful bidder and got 83 lakh shares at Rs 775 per share.
After LIC, SBI was the second most successful bidder and got 83 lakh shares at Rs 775 per share.
The other PSU banks, who bidded for Maruti shares, include Corporation Bank and Union Bank of India.