The government on Thursday exited the country's largest car maker Maruti Udyog Ltd, selling its residual stake for Rs 2,360 crore (Rs 23.6 billion) to a clutch of financial institutions led by Life Insurance Corporation.

"We have sold the entire shares held by the government in Maruti at an average price of Rs 797 a share to raise Rs 2,360 crore," Minister of Heavy Industries and Public Enterprises Sontosh Mohan Dev told newspersons after the bids were opened.

Maruti shares today closed at Rs 764.65 on the bourses. The government had fixed a floor price of Rs 760 for the sale.

The government had offered 2.96 crore (29.6 million) shares in the company, representing 10.27 per cent stake. Of this, LIC got all the 1.3 crore (13 million) shares it had bid for at a price of Rs 800 per share. The country's biggest insurer, which earlier held 8.1 per cent, now controls 12.5 per cent and has become the second-largest shareholder in the company.

"The shares would, however, be transferred to LIC in September when the shareholders of Suzuki Motor Corporation, which owns the company, amend the Articles of Association.

Suzuki officials have already given a go ahead to LIC increasing its stake in the Maruti to over 10 per cent," P V Bhide, secretary in the department of divestment said.