The government on Monday invited expressions of interest from public sector financial institutions and banks for selling 8 per cent of its 18.28 per cent stake in Maruti Udyog Ltd [Get Quote] and said it was open to selling the entire shares on offer to a single bidder.

The government holds 5,28,24,020 equity shares in Maruti representing 18.28 per cent of the company's equity. Of the total number of shares it holds in Maruti, it is offering up to 2,31,12,804 shares, representing 8.00 per cent of the equity.

Only public sector financial institutions and banks can bid for the shares. Asset management companies and mutual funds managed by these institutions cannot participate in this transaction, officials added.

"The minimum bid value is Rs 10 crore (Rs 100 million) and a single institution can bid for all the shares on offer," officials said.

However, the government has said that the present holding of the institution in Maruti and shares transferred from government to it should not exceed 10 per cent equity of MUL on the date of such transfer.

At the time of submission of bids, institutions have been asked to disclose their exact shareholding in the company. The shares comes with a lock-in period of six months.

The last date for submitting EoI is January four. After the EoIs are submitted, the shortlisted institutions will be asked to submit financial bids.

Going by the current price of Maruti's scrip on stock exchanges, the government can raise around Rs 1,500 crore (Rs 15 billion) from the sale.

SBI [Get Quote] Capital Markets Ltd and Kotak Mahindra Capital Company Ltd are advising the government on the transaction.