Maruti IPO to hit market in March

The government is likely to hit the market with its public issue for sale of equity in carmaker Maruti Udyog Ltd by March 17.

"As of now the tentative date for launch of the IPO for Maruti, is likely to be March 17," official sources said in New Delhi.

The public issue is in the second stage of divestment in MUL where the joint venture partner Suzuki Motor Corporation had agreed to give an underwriting of Rs 2,300 a share as part of the agreement and the government had decided to offer 25 per cent equity by March, 2003 through an IPO and the remaining is to be sold by the next financial year.  

According to the divestment ministry, the roadshows for the IPO in MUL is likely to be segregated in two rounds including a pre-marketing roadshow slated in the first half of next month.

The roadshows would be held in US, England, Dubai, Hong Kong and Singapore, divestment ministry sources said.

The next phase would comprise the final roadshow, which is likely to take place in early March.

The prospectus for IPO is expected to be filed with Securities and Exchange Board of India sometime in February.

The government had earlier decided to give up hard underwriting option in favour of soft underwriting option provided by Suzuki after failing to secure capital market watchdog Sebi's approval for the same.

The hard underwriting option failed to take-off owing to Sebi's insistence on holding the share price for a 60-day period post issue.