| Suzuki: Countdown begins
New Delhi, July 7: Officials of Maruti Udyog Ltd today held a meeting with disinvestment minister Arun Shourie and decided on July 9 as the day when the shares of the largest carmaker in the country will list on the stock market.
The initial public offering (IPO) of Maruti Udyog was oversubscribed over 10 times with the cut-off price fixed at Rs 125 per share. Market maven expect the stock to list at a 20 per cent premium at the very least.
The company raised Rs 982 crore for the government which sold 27.5 per cent of its 48.5 per cent equity held in Maruti last month.
Analysts expect the stock to list at Rs 150-155 which would give the carmaker a market capitalisation of Rs 4,285 crore on the first day itself.
Maruti, 54.2 per cent owned by Japan’s Suzuki Motor Corp, today also reconstituted it’s board by appointing three independent directors and one part-time director.
Among the independent directors are Kumar Mangalam Birla, chairman of the AV Birla Group, Amal Ganguli, former chairman of the Indian unit of PricewaterhouseCoopers and Pallavi Shroff, senior partner of Amarchand and Mangaldas and Suresh A Shroff and Co, an accountant firm.
Former managing director of Maruti Udyog, R. C. Bhargava, has been inducted as a part-time director.
“These appointments were approved by the company’s board at the meeting which was attended by the chairman of Suzuki Motor Corp, Suzuki,” the carmaker said in a statement.
“The board accepted the resignation of H Nagao and M Atsumi as directors and also constituted an audit committee and a shareholders’ investors’ grievances committee as mandated by the stock exchanges,” the statement added.
Maruti, which retails more than half the 5,42,000 new cars sold in the past year to March 2003, expect profits to nearly double in the current financial 2003-04 due to surge in sales.
In 2002-03, the carmaker reported a 40 per cent jump in net profit at Rs 146 crore citing higher productivity and reduced expenditure although sales inched up marginally 2.8 per cent to 3,62,426 units during the year.
During the year, revenues were flat at Rs 9,426 crore against Rs 9,398.9 crore in 2001-02.