Maruti makes debut on Indian bourses on upbeat note

Wednesday, 09 July 2003, 19:30 IST
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India's largest carmaker Maruti Udyog Ltd Wednesday made its debut in the Indian stock markets on a buoyant note with its shares gaining as much as 25 percent in the early trade.

MUMBAI: Shares of Maruti, a unit of Japanese automobile giant Suzuki Motor Corporation, started trading on the Bombay Stock Exchange (BSE) at 157, a 25.6 percent premium, to the issue price of 125. Dealers said about one million shares were traded within minutes of its listing on the bourses. Maruti shares also started trading on the National Stock Exchange Wednesday. The Indian government is divesting 25 percent of its 45.8 percent stake in Maruti through an initial public offering (IPO). The government has decided to increase the number of shares to be issued to individuals after the company last month concluded a highly successful IPO of 72.24 million shares. The issue has been subscribed nearly 10 times, making it the second largest IPO collection in the Indian market. Bids were received for over 692.10 million shares, as against the issue size of 72.24 million shares. Suzuki Motor took management control of Maruti from the Indian government in May 2002, as part of the latter's privatisation programme. The Japanese auto major holds a majority 54.2 percent stake.
Source: IANS

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