"We have received in-principle nod from FIPB recently for FIIs, NRIs and OCBs to participate in public offering for MUL," officials involved in the second stage of divestment in MUL told PTI.
The nod is in response to a generic permission that had been sought by the divestment ministry for FIIs registered with Securities and Exchange Board of India, NRIs and OCBs to enable them pick equity in MUL.
Government is confident of mopping up at least Rs 800 crore (Rs 8 billion) from the issue for 25 per cent equity in the JV with Japanese Suzuki Motor Corporation.
The divestment ministry expects to file the prospectus before the market regulator SEBI this month for completing the IPO by middle of March.
A monitoring mechanism has been put in place to ensure that IPO does not spill over to the next financial year, and SMC and government representatives are meeting every week at the divestment ministry along with advisors, merchant bankers and legal advisors.
The public issue is the second stage of divestment in MUL where the joint venture partner SMC has agreed to give an underwriting of Rs 2300 a share as part of the agreement and government has decided to offer 25 per cent equity by March, 2003 through an IPO and the remaining is to be sold in the next financial year.
The domestic IPO of MUL would have an international footing as road shows are being planned in United States, England, Dubai, Hong Kong and Singapore.
The road shows for the ensuing IPO are likely to be segregated in two rounds including a pre-marketing road show slated in February. The next phase would comprise the final road show, which is likely to take place in early March.
The ministry expects to complete the IPO by mid-March. The divestment ministry expects to raise about Rs 1400 crore (Rs 14 billion) from the next two stages of MUL divestment, apart from Rs 1000 crore (Rs 10 billion) it mopped up last year from the rights issue in the car marker.
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