The government has decided to make its complete exit from Maruti Udyog limited (MUL). The government has 10.27 per cent stake in Maruti and it has decided to sell its remaining stake from it.

At current market price, the stake has the value of more than Rs 2,700 crore (Rs 27 billion).

Today, the Cabinet Committee on Economic Affairs has given the green signal to the sale of government’s remaining shares in Maruti.

The government has 2,96,79,689 shares, on September 31, 2006 in MUL. The Japanese auto giant Suzuki enjoys a majority of 54.2 per cent stake in the company.

It will be the final destination achieved by the government of the gradual withdrawal from Maruti.

Earlier, Earlier, in 1981, Maruti Udyog was established through an Act of Parliament.The government had more than 50 per cent share in it.

The Japanese auto giant Suzuki was selected among seven partners for the Joint Venture. The agreement was signed between the Government and the Suzuki in October 1982.

This year, it is the second attempt to sell government’s stake in Maruti by the government. Earlier, in January this year, the government has mopped up Rs 1,567 crore when it sold its eight per cent equity in Maruti.

It has sold its stake to banks and other financial institutions on an average price of Rs 678.24 per share.

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