Financial Daily from THE HINDU group of publications
Thursday, Jan 12, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Home Page - PSU
Industry & Economy - Disinvestment
Money & Banking - Financial Institutions


Bids for MUL stake: Banks, FIs take cautious approach

Our Bureau

New Delhi , Jan. 11

THE deadline for putting in bids by banks and financial institutions for an 8 per cent stake in Maruti Udyog Ltd (MUL) being divested by the Government ended on Wednesday, with most institutional investors understood to have taken a cautious approach on their bids.

Institutional sources said that they expected most bids to have been made between Rs 630 and Rs 660 per share.

This is against the MUL's closing price of Rs 651 on the BSE, and Rs 653, on the NSE, on the last trading day on Tuesday.

The Government has set a floor price of Rs 620 per share for the disinvestment.

Banks and institutions have held behind-the-scene discussions on the expected bidding pattern that was likely to unfold for the MUL shares.

Bankers said the six-month lock-in period has been one of the main reasons for institutions being cautious on bidding aggressively.

"The bids are likely to be between Rs 630 and Rs 660. Most of us had to be cautious since we had to take a view on what the possible price of the scrip could be six months down the line when we would be allowed to offload them," a banker told Business Line.

An Empowered Group of Ministers is due to meet to take a final view on the allotment of the shares.

The MUL offer had elicited expression of interest from 36 potential bidders.

The Government now holds 18.28 per cent of the equity in MUL. Even as the process of divesting 8 per cent of this is on, the Government has been talking of the possibility of completely exiting the company.

More Stories on : PSU | Disinvestment | Financial Institutions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Scramjet: ISRO makes major breakthrough


Fresh system to lift mercury in North
Sahara, Jet in talks for `strategic alliance'
Auto show set for big launch today — Rs 440-cr business deals likely to be accomplished
Bids for MUL stake: Banks, FIs take cautious approach
Chidambaram promises to simplify fringe benefit tax — `Non-navratna disinvestment on track'
Power problem: Wipro thinks `captive'
Infosys to review hedging policy — `Rupee volatility very high this quarter, we have to be slightly more active'
Infosys Q3 net up 31 pc — Volatile rupee hits profitability
Infosys headcount to hit 50,000 soon
Electricity Tribunal allows PowerGrid to execute M.P. project at higher cost — Sets aside CERC order on `cost ceiling'


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line