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Maruti to tap capital market in June

NEW DELHI MAY 15. The much awaited public offering of shares of Maruti Udyog will hit the market by early June this year, a top company official said today.

Speaking to reporters here, the company's Managing Director, Jagdish Khattar, said the initial public offering of shares would take place in the first half of next month.

Mr. Khattar said the car major had already responded to queries raised by the capital markets regulator on the prospectus filed with the Securities and Exchanges Board.

He said the Government would divest 72 million shares at a face value of Rs. 5 each, adding that the price would be determined based on the book building route.

Asked about the road shows to be held for the upcoming issue, Mr. Khattar said a decision would be taken next week on where to hold the shows.

The Government proposes to disinvest 25 per cent stake in the car giant thereby diluting its stake to 20 per cent, which would be followed by a second tranche of public offering leading to Government's exit from the company.

Last year, the Government ceded control to its joint venture partner Suzuki through a rights issue of Rs. 400 crores for a control premium of Rs. 1,000 crores. The Japanese partner has already agreed to underwrite the issue at Rs. 2,300 per share. When queried over MUL's plans to enter new market segments, he said the company felt the market was in the small car segment with a price range of less than Rs. 4-5 lakhs.

As far as exports of Alto were concerned, he said talks were on to explore the possibilities of entering Middle East markets particularly Saudi Arabia and Gulf countries. — PTI

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