The much-awaited public offering of shares in auto maker Maruti Udyog cleared another hurdle with the Bombay Stock Exchange and the National Stock Exchange clearing the prospectus for the ensuing issue.
The two stock exchanges gave their approvals for the proposed IPO, paving the way for the listing of stocks on the bourses, said official sources.
The government proposes to shed 25 per cent of its equity in the car giant as part of the IPO to be floated in June, thereby diluting its stake to 20 per cent. This would then be followed by another tranche of public offering facilitating the exit of the government from the company.
The government currently holds around 45 per cent stake in the company, while Suzuki Motor Corporation holds around 55 per cent.
Last year, the government ceded management control to its joint venture partner through a Rs 400 crore (Rs 4 billion) rights issue at a premium of Rs 1,000 crore (Rs 10 billion).
The public issue would follow the book building route for 72 million shares with a face value of Rs 5 per share.
The auto giant has also clarified to capital markets watchdog Securities and Exchanges Board all enquiries raised by it over the prospectus which are said to be editorial in nature.