New Delhi: The Securities and Exchange Board of India (Sebi) has cleared the draft offer document for the proposed public offering of the government's 25-per cent stake in India's largest car manufacturer Maruti Udyog (MUL).
The offer of sale, which is being done through the book-building route and is likely to hit the market by mid-June 2003, is the first part of the two-stage divestment process that has been planned for the exit of the Indian government from the joint venture company.
About 72 million shares of MUL of a face value of Rs 5 per share are on offer for subscription by the public. Suzuki Motor Corporation has underwritten the issue at Rs 115 per share. "The issue has been cleared," says Sebi chairman G N Bajpai.
The government proposes to sell 25 per cent of its 45-per cent stake in the first phase and the remaining 20 per cent during the second phase by 2004. Suzuki Motor Corporation holds around 55 per cent stake in Maruti Udyog.