SMC To Submit MUL Business Plan Shortly

New Delhi, January 28: | Updated: Jan 29 2003, 05:30am hrs
Suzuki Motor Corporation of Japan is believed to have promised to submit the business plan for joint venture Maruti Udyog Ltd (MUL) by month-end to enable the government to proceed with its proposed public offer in the car company during the current Financial year.

SMC was asked by the heavy industry and disinvestment ministries to give the business plan by mid-January for working out the prospectus for the forthcoming IPO for the government to divest 25 per cent of its 45 per cent equity in the joint venture MUL, sources said.

The disinvestment ministry is then expected to file the prospectus before the market regulator Securities and Exchange Board of India (Sebi) next month for launching the IPO by the middle of March, the sources said.

In an effort to expedite the process and ensure that IPO did not spill over to the next fiscal, both SMC and government representatives are meeting every week at the disinvestment ministry along with advisors, merchant bankers and legal advisors. The IPO is the second stage of selloff in MUL where the government had ceded majority control earlier this financial year by forgoing participation in the rights issue for a consideration of a total premium of about Rs 1,000 crore.