The government will invite bids by next week from advisors for selling its 8.0 per cent stake in Maruti Udyog Ltd [Get Quote].

The expression of interest from the advisors to the sale would be invited in the next few days, sources told PTI.

At the meeting of the inter ministerial group, the go ahead was given to the department of divestment to call the bids and inform the various stake holders, including joint venture partners, about the sale.

The Union Cabinet had given its nod to the sale of eight per cent stake in Maruti on September 2.

The government is expected to raise anywhere between Rs 900 -1,000 crore (Rs 9 to 10 billion) from the sale.

Only public sector financial institutions would be allowed to bid for the Maruti shares. The divestment will be done through competitive bidding with the market price as the benchmark.

The government holding will reduce to 10.28 per cent after the divestment. It has already expressed its intention to off-load even 10.28 per cent stake in Maruti, which will be left with it after the divestment, at a later date.

It earlier held 45.8 per cent of stake in Maruti, comprising 13.23 crore (132.3 million) shares of Rs 5 each.

In June 2003, the government sold 7.94 crore (79.4 million) shares, constituting 27.5 per cent of equity shares, through an initial public offering. The government mopped up Rs 993 crore (Rs 9.93 billion) from the IPO by selling shares at Rs 125 per share of face value of Rs 5.