No decision to defer MUL issue beyond Dec 2003

NEW DELHI: The government has not decided to defer the Maruti public issue beyond December ''03, but would float the company as soon as the market conditions improve.
Disinvestment secretary Pradip Baijal told ET that the government has time till December 2003 to float the issue under the revised joint venture agreement between it and Suzuki Motors, although the Centre had committed to offload a little more than 36 lakh shares representing 25% of the equity holding by March ''03.
“We feel the market conditions are not right for a public issue at present and we are in no hurry. At the moment, we are trying to get a clearance for hard underwriting for the public offering,� Baijal said.
Sebi is examing the proposal, he said. Suzuki had agreed to underwrite the first issue of 36.12 lakh shares at Rs 2,300 apiece.
The government is keen to sell the shares at Rs 2,500 each and has been talking to several merchant banks to underwrite the difference between Rs 2,300 and the issue price.