Selection of advisor for Maruti public offer next week

NEW DELHI: In a move that would kick-start the second stage of disinvestment in Maruti Udyog, Disinvestment Ministry has scheduled for next week, the process of selection of advisors for MUL public offer.
"The selection of advisor for the public offer of MUL has been scheduled for next week and the appointment of the advisor is likely to be completed next week itself," government sources told PTI.
The government recently approved disinvestment in MUL through a two-stage process commencing with reduction of its stake in the joint venture to 45.4 per cent from 49.7 per cent, for a premium of Rs 1,000 crore to give majority stake to its joint venture partner Suzuki Motor Corporation of Japan by not subscribing to a Rs 400 crore rights issue.
Thereafter, government would offload its remaining equity through public offer in two tranches by April 2004.
Under the first phase of public offer, government would lower its equity to 25 per cent by March next and the rest would be divested in the subsequent year.
Suzuki has agreed to underwrite the first public issue of about 36 lakh shares held by the government at a price of Rs 2,300 crore per shares.