BUSINESS

SEBI approves IPO

NEW DELHI, MAY 22. The much awaited public offering of shares of the auto major Maruti Udyog Ltd. has cleared another major hurdle with the Securities and Exchange Board of India approving the draft prospectus for the Initial Public Offer, slated to hit the market by early June.

"The IPO of Maruti has been cleared,'' the SEBI Chairman, G. N. Bajpai, told reporters here on the sidelines of a seminar here.

The country's largest bourses — National Stock Exchange and the Bombay Stock Exchange — had earlier this week cleared the proposed IPO of Maruti, paving the way for listing of stocks on the bourses.

The Government proposes to shed as much as 25 per cent of its equity in the car giant as part of the upcoming public offering thereby diluting its stake to 20 per cent. This would then be followed by another tranche of public offering facilitating the exit of the Government from the company. It now holds 44 per cent stake in the company while Suzuki Motor Corporation holds around 56 per cent.

PTI

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