(14th May 2002)
GOVERNMENT OF INDIA
MINISTRY OF DISINVESTMENT
1. Government today approved disinvestment in Maruti Udyog Limited (MUL) through a two-stage process :
(i) a rights issue by MUL in the first phase of Rs.400 crores with Government renouncing its rights share to Suzuki. Suzuki would gain majority control and pay Rs 1000 crores to Government as control premium.
(ii) sale of its existing shares through a public issue in the second phase ; the issue to be underwritten by Suzuki.
HIGHLIGHTS OF THE AGREEMENT REACHED