The Telegraph
Since 1st March, 1999
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Final price of Maruti shares by June 21

New Delhi, June 16: The government is likely to decide on the cut-off price for Maruti Udyog’s IPO by June 21.

The government is divesting 7.2 crore shares in MUL amounting to 25 per cent of the equity through the book-building route.

The cut-off price, to be finalised by the group of ministers (GoM) on disinvestment, will be decided two days after the public offer closes on June 19.

The GoM may meet the next day of the closure of the public issue on June 19 to consider the recommendations made by the advisers. This will be done in consultation with the divestment ministry to firm up the selling price for 7.2 crore shares where the government has a green-shoe option to offload another 10 per cent of the issue.

The GoM, comprising the ministers of finance, heavy industries, power and disinvestment, will finalise the prices of the shares of MUL put up for disinvestment through public offering route.

This group has been in existence even before the National Democratic Alliance led by Prime Minister Atal Bihari Vajpayee came to power.

After the price has been finalised on the basis of the bids of qualified institutional buyers, high net-worth investors and retail investors, the bids above it will be considered for allotment of shares, sources clarified.

This implies that even if an individual bidder quotes a price of Rs 150 for the shares and the final offer is settled at Rs 130, then the investors would be offered shares at the latter price.

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