Carmaker Maruti's shares priced at Rs 125

Monday, 23 June 2003, 07:00 Hrs
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NEW DELHI: Shares of India's largest carmaker Maruti Udyog Limited will be listed on domestic bourses at 125, Disinvestment Minister Arun Shourie said Saturday.

The government, which is divesting 25 percent of its 45.8 percent stake in Maruti through an initial public offering (IPO), has also decided to increase the number of shares to be issued to individuals, Shourie told a press conference here.

Under the revised share allotment guidelines, individuals will get 60 percent of total shares of Maruti, a unit of Japanese automobile giant Suzuki Motor Corporation, while institutional investors will pick up the remaining 40 percent.

Of the total 60 percent, 15 percent would be given to high net-worth individuals who have put in bids for over 1,000 shares each, the minister added.

Earlier, the government had said it would reserve 60 percent of the offering for institutional investors and 40 percent for individual investors.

A high-level inter-ministerial group Friday finalised the price and allocation of shares of Maruti Udyog, which Thursday 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 72.2 million shares.

Most bids came in between 120 and 125 for a share that had a floor price of 115. The number of bids at 125 exceeded those at 120.

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.

Maruti posted a 40 percent growth in net profit to 1.46 billion in the year to March 2003. The company's total revenue rose to 94.26 billion in 2002-03 from 93.98 billion in the previous fiscal.
Source: IANS
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