"The expression of interest from public sector financial institutions for 8.0 per cent (of 18.28 per cent) shares of government in Maruti will be invited next week," sources told PTI.
The government proposes to sell a part of its remaining equity in Maruti to financial institutions through a bidding process. It will offload 10.28 per cent shares in 2006.
The advisors for the sale - SBI Capital Markets and Kotak Mahindra - have reportedly arrived at the floor price of the Maruti shares keeping the market price as a benchmark.
Based on the today's price of Maruti scrip on Bombay Stock Exchange, the government is expected to raise close to Rs 1,500 crore (Rs 15 billion) from the sale.
If the sale of Maruti shares is completed without hiccups, the government may use this mode of divestment in other cases too, sources added.
The government has already declared that it intends to offload small stake in non-navratna profitable PSUs and its residual stake in PSUs that have already been privatised.
According to reports a list of 14 PSUs has been drawn in which the government will divest a part of its stake.
"For selling small stakes the model followed in the case of Maruti could be followed as it is less cumbersome, time consuming and cost effective," the sources said.
This mode of divestment was tried in early 90s when the divestment process started but this time the government is taking cautious steps.
It wants to ensure that the sale of shares to financial institutions instead of general public stands the test of audit.
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