The Hindu : Maruti IPO gets huge response

Online edition of India's National Newspaper
Friday, Jun 20, 2003

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Business

Maruti IPO gets huge response

NEW DELHI JUNE 19. Maruti Udyog's public offering closed today with huge response clocking 9.03 times oversubscription with maximum bids at Rs. 125 per share.

An Inter-Ministerial Group (IMG) would meet tomorrow to fix the share price, and a final announcement is likely to be made on June 21. Terming the response to the IPO as "heartening,'' the Disinvestment Minister, Arun Shourie, said the Inter-Ministerial Group would also decide the quantum of allocation of shares among FIIs, high net worth individuals and retail investors.

The issue, which opened on June 12 with a floor price of Rs. 115 per share, has a maximum of 60 per cent allocated for FIIs and a minimum of 15 per cent and 25 per cent for non-institutional bidders and retail investors, as per the offer document.

"Now we will be proceeding swiftly... The principles for determining the price has already been settled and the IMG will meet tomorrow to fix the share price and allocation,'' he said.

The company received today, the last day of the issue, bids for a whopping 24.80 crore shares, the largest on a single day of the offer which opened on June 12.

On a cumulative basis, the MUL IPO received bids totalling 65.27 crore shares as against the issue size of 7.22 crore shares, as per the latest data available with the Bombay Stock Exchange.

PTI

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