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Suzuki charges up Maruti flotation

New Delhi, Feb. 3: Suzuki Motor Corporation today submitted the business plan for Maruti Udyog Ltd to enable the government to proceed with the proposed public offer in the auto major this fiscal.

“Suzuki today submitted the business plan for Maruti. The merchant bankers will now study it,” sources involved with the disinvestment process in Maruti said.

The business plan is understood to encompass the short-term and medium-term strategies of the auto major, which has a market share of over 50 per cent. Maruti had posted a profit of about Rs 105 crore last fiscal after suffering a loss of Rs 269 crore in the previous year.

The business plan is also expected to include possible launches as also variants of the existing models by Maruti to sustain its leadership position in the face of a near continuous decline in its market share in the last three to four years.

The submission of the business plan is important as it would pave the way for drafting the prospectus for the ensuing IPO through which the government would divest 25 per cent of its 45 per cent equity in the joint venture.

PTI adds: The disinvestment ministry is approaching the Foreign Investment Promotion Board for permission to allow foreign institutional investors, NRIs and overseas corporate bodies to participate in the ensuing public offer for the government’s stake in MUL.

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