Maruti float deadline extended to July 31

The Cabinet Committee on Divestment will meet on May 1 to revise the joint venture agreement between the government of India and Suzuki Motor, the two partners of Maruti Udyog.

The revision in the agreement will involve changes in the deadlines for the initial public offer and the rights issue.

The pact stated that the deadline for dilution of 25 per cent government stake in the company would be March 31, 2003, and that of the remaining 46 per cent December 2003. They have now been revised to July 31, 2003, and March 31, 2004, respectively.

Maruti has filed its delayed prospectus with the Securities and Exchange Board of India for its public offer. "The offer document has been filed with us," Sebi officials said in Mumbai on Friday night.

After acquiring clearances from Sebi, the public offer will commence through book-building. The comforting factor for the government is the promise of underwriting of the issue by Suzuki at Rs 2,300 a share.

The Cabinet committee will also consider divesting Tide Water Oil Ltd, Hooghly Printing and Hindustan Newsprint Ltd.

The decision on the companies had been deferred at the April 15 meeting of the panel because Minister of Heavy Industries Balasaheb Vikhe-Patil was absent.

The Centre is looking at a 50 per cent divestment in Tide Water Oil. Andrew Yule has a 10 per cent stake in it, and the rest is held by financial institutions. Public sector oil companies and multinational firms are interested in Tide Water Oil.

The government also proposes to divest 74 per cent equity in Hindustan Newsprint Ltd and its entire 100 per cent stake in Hooghly Printing. The latter is a 100 per cent subsidiary of Andrew Yule.