Sunday,
June 22, 2003, Chandigarh, India
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Maruti share priced at Rs 125 New Delhi, June 21 Disinvestment Minister Arun Shourie told reporters via videoconferencing from Malaysia that the ratio of allocation of shares had been revised to 60 per cent for individuals and 40 per cent for financial institutions. Higher allocation to retail investors, Mr Shourie said, was in accordance with the wishes expressed by Atal Bihari Vajpayee to broadbase the equity in Maruti. “Although the SEBI guidelines allow us to give 60 per cent to institutional investors, we have decided to reverse the ratio,” he said. Of the total 60 per cent, 15 per cent would be given to high networth individuals who have put in bids for over 1,000 shares each. Stock
analysts were of the view that the issue would open on a strong note once it was listed and the higher allocation for individual investor could bring back the confidence of the
browsers. MUL shares would be listed in the NSE and the BSE within 15 days. Further, the success of the Maruti IPO could force bigger issues with quality names like Tata Consultancy and Patni Computers to rethink and enter the IPO market. Mr Shourie said the government would mop up Rs 993 crore from the sale of its 25 per cent stake in Maruti. The Rs 5 share of the car maker had a floor price of Rs 115. The government also decided to retain the 10 per cent oversubscription as a result of which the total sale of equity would be 7.94 crore shares. As a result of the oversubscription, the government equity in the joint venture with Suzuki Motor Corporation of Japan would come down to marginally over 17 per cent which would be divested within a year. |
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