MUL disinvestment in favour of employees

New Delhi, Feb 22 (UNI) The Cabinet Committee on Economic Affairs (CCEA) has decided to divest 39,777 shares of Maruti Udyog Limited(MUL) to 1994 employees at a price of Rs 660 per share, the lowest cut off price at which the sale was concluded to Public Sector Banks and Public Sector Financial Institutions.

''The transaction in this regard will be completed by the end of this month or early March,'' Finance Minister P Chidambaram said briefing newspersons this morning on the outcome of the CCEA meeting last night.

The Finance Minister said disinvestment receipts realised through this transaction will be Rs 2,625 crore. After this disinvestment, the shareholding of Government in MUL would come down from 10.28 per cent to 10.27 per cent.

In January 2006, the government sold eight per cent equity of MUL to public sector financial institutions and public sector banks. After deciding this sale, it had also been announced that the government would offer up to 20 shares each to employees of MUL at a price of Rs 660 per share.

Out of the 3596 eligible employees of MUL, 1994 employees have conveyed their willingness to avail the offer. Accordingly, the government has decided to disinvest 39,777 shares applied for, as per the terms of the offer.

UNI GS AK DS1118