The Suzuki Motor Corporation of Japan is believed to have promised to submit the business plan for joint venture Maruti Udyog by the month-end to enable the government to proceed with its proposed public offer in the car company during the current financial year.
SMC was asked by the heavy industry ministry and divestment ministry to give the business plan by mid-January for working out the prospectus for the forthcoming IPO for government to divest 25 per cent of its 45 per cent equity in the joint venture MUL, sources said.
The divestment ministry is then expected to file the prospectus before the market regulator Securities and Exchange Board of India next month for launching the initial public offering the by middle of March, sources said.
In an effort to expedite the process and ensure that IPO did not spill over to the next financial year, both SMC and government representatives are meeting every week at the divestment ministry along with advisors, merchant bankers and legal advisors.
IPO is the second stage of divestment in MUL where the government had ceded majority control earlier this financial year by forgoing participation in the rights issue for a consideration of a total premium of about Rs 1,000 crore (Rs 10 billion).
When contacted, divestment ministry officials said that no floor price had been fixed for the IPO as of now and the issue would be taken up after launching of the issue through the book-building route.
At the same time they pointed out that SMC had agreed to underwrite the issue at the rate of Rs 2,300 per share.
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