Maruti Udyog Ltd.

Maruti Udyog Ltd.

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Maruti Udyog Ltd.

(14th May 2002)

GOVERNMENT OF INDIA
MINISTRY OF DISINVESTMENT

1. Government today approved disinvestment in Maruti Udyog Limited (MUL) through a two-stage process :

(i) a rights issue by MUL in the first phase of Rs.400 crores with Government renouncing its rights share to Suzuki. Suzuki would gain majority control and pay Rs 1000 crores to Government as control premium.

(ii) sale of its existing shares through a public issue in the second phase ; the issue to be underwritten by Suzuki.

HIGHLIGHTS OF THE AGREEMENT REACHED

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Maruti Udyog Ltd.

MARUTI GETS A 1.76 BILLION DOLLAR RESPONSE

IPO priced at Rs.125 per share above the Floor Price of Rs.115

The Maruti IPO, which opened to an overwhelming response on June 12, closed on June 19. The issue was over-subscribed more than 10 times. The issue price has been fixed by Government at Rs.125 per share.

Government has also decided to avail of the option of placing an additional 10% in the market. Out of this, 85% would be allotted to non-institutional retail investors and 15% to non-institutional High Networth Individuals.

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Maruti Udyog Ltd.

DISNVESTMENT IN MARUTI UDYOG LTD.

In terms of the decision of CCD dated 14.5.2002, Government of India entered into with Suzuki Motor Corporation and Maruti Udyog Ltd., a revised Joint Venture Agreement on 15.5.202.

The RJVA envisaged the completion of IPO by 31st March 2003 and in case it was not possible to complete the same by that time, GOI could extend the same till 31st December 2003.

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