New Delhi: Buoyed by the overwhelming response received by the Maruti Udyog's Limited (MUL) maiden public offer of 7.2 crore shares, government on June 12 said it was a vindication of its divestment "policies and approach".

"I am delighted with the response. It is also a vindication of the government's policies and approach to disinvestment," Disinvestment Minister Arun Shourie told reporters.

The issue for divestment of 25 per cent government equity in the car joint venture MUL with Japan's Suzuki Motor Corporation was oversubscribed within three hours of its opening and bids totalling 7.89 crore shares were received on day one.

"The market reacts best when there is a strong strategic partner in place -- like Suzuki in this case," a jubilant Shourie said.

Suzuki had committed to underwrite the issue at Rs 115 a share which became the floor price for IP.

A day ahead of the issue, Shourie had told reporters that MUL IPO could be a trendsetter for proposed offerings in the case of NALCO and BPCL later in the current financial year.

PTI