 New Delhi: The Indian government is expecting a realisation of Rs 700 to 800 crore from the proposed initial public offer (IPO) of Maruti Udyog (MUL). The IPO is expected to hit the market by the middle of March 2003. ''With this IPO involving the sale of about 25 per cent of the government's residual equity in the carmaker, we are expecting proceeds of about Rs 700-800 crore,'' says Pradip Baijal, secretary, ministry of disinvestment. The government had, last year, transferred management control of Maruti to its joint venture partner, Suzuki Motor Corporation, for a consideration of Rs 1,000 crore. The sale of the government's residual equity in Maruti is expected to fetch another Rs 1,400 crore. ''This would be spread over the next two stages of disinvestment in MUL,'' Baijal adds. As per the revised joint venture agreement signed between the two sides, Suzuki has agreed to underwrite the first public issue at Rs 2,300 per share.
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