The prospectus for the forthcoming public issue of Maruti as part of government's divestment programme in the joint venture with Suzuki Motor Corp is likely to be filed before Sebi by February.
A decision to this effect is understood to have been taken by the Ministry of Disinvestment and SMC along with the merchant bankers on Wednesday.
Craford and Bailey is understood to have been appointed as legal advisors for the initial public offer.
When contacted disinvestment secretary Pradeep Baijal said, "A monitoring group comprising merchant bankers and legal advisors will meet every Tuesday to review the process aimed at completing 25 per cent divestment through IPO by targeted March 31."
The SMC representatives Naka Neshi and Saito, Maruti managing director Jagdish Khattar, Baijal and heavy industry secretary Naresh Narad were present during the meeting on Wednesday, sources said.
The two partners in the joint venture Maruti gave all the required information to the appointed merchant bankers - ICICI Securities, Kotak Mahindra and HSBC - for finalising the prospectus.
A participant of the meeting said there would no requirement for the International Accounting Standard for the proposed issue that is being built as a major domestic IPO on international platform.
The IPO would be through the process of book building which is likely to commence by early March, sources said.
The appointment of legal advisors would ensure that the documents for the ensuing IPO were in line with Sebi regulations.
"The legal advisor would also look at the requirements of of law in India and outside the country where we are looking for investors," sources pointed out.
The public offering of MUL shares follows the privatisation of the car major last year through a Rs 400 crore (Rs 4 billion) rights issue at a premium of Rs 1000 crore (Rs 10 billion) enabling Japanese partner Suzuki Motor Corp to acquire majority stake in the company.
Government currently holds close to 45 per cent stake in MUL which would stand diluted to 25 per cent after the first tranche of public offering.
Under the agreement with Suzuki, government would completely exit the company after the second round of offering.