New Delhi, June 09: Car-maker Maruti Udyog Ltd is likely to open its much-awaited public offering today after market regulator Sebi clearing its draft prospectus. The company will close books on June 16. Through the initial public offer for sale of 7.2 crore shares by way of book building route, Maruti will divest 25 per cent of the government equity in the joint venture car company, sources close to the disinvestment process said.
Sources said that though the IPO offer is for sale of 7.2 crore shares, the company has a green shoe option of retaining upto 10 per cent in case there is an over-subscription. The total sale in such a case could be for 7.95 crore shares each with a face value of Rs five.
The opening of the public offer has been preceded by a series of roadshows across India and abroad for wooing the investor community, sources said. The country's largest bourses - National Stock Exchange and Bombay Stock Exchange - had last month cleared the proposed IPO of Maruti, paving the way for listing of stocks on these bourses.
Ahead of opening its public offering, not only did MUL announce impressive financial results including a 40 per cent rise in net profit to Rs 146 crore for 2002-03, it also held an elaborate meeting with about 120 chosen stock brokers from all over the country with a view to reach a greater number of individual investors.
Last year, government ceded control of Maruti to its joint venture partner Suzuki following a Rs 400 crore rights issue. Suzuki acquired about four per cent equity in the company for a consideration of around Rs 1,400 crore including a renunciation premium of Rs 1,000 crore. Under the deal, government is required to exit the company following a two-stage divestment process, involving a public offering of shares. It proposes to shed 25 per cent of its 45 per cent equity in the first phase and another 20 per cent during the second phase by 2004. Bureau Report