The initial public offer for India’s largest car maker, Maruti Udyog Ltd., will open for subscription on June 12, Dow Jones reported, citing the Press Trust of India news agency. The offer will close on June 19, the report said, quoting unnamed company sources.
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The high-profile listing will enable the government to reduce its equity in the company to 20% from 45%. Majority owner Suzuki Motor holds a 54% stake in Maruti, the report added.
Analysts told the news agency the 72.2 million-shares, at a floor price of 115 rupees a share, will be oversubscribed at least twice.
The analysts also say a major drawcard of the IPO will be Suzuki’s commitment to accelerate technology transfers to the car maker after the government reduces its shareholding in Maruti, the reports said.
