The race for participating in the Maruti Udyog initial public offering is hotting up with two more foreign institutional investors -- Merrill Lynch Investment Managers and Barings Asset Management Company -- showing interest.
This comes close on the heels of Schroders, Capital International and Templeton evincing interest in picking up stake in Maruti through the IPO.
"Merrill Lynch and Barings have shown interest in participating in the public offer. However, a final decision is yet to be taken," sources close to the development said.
The Maruti IPO, slated to open on June 9, assumes significance for investors as it comes at a time when the capital market is starved off any significant issue.
Under the terms of the IPO, a single institutional investor can at best hold 10 per cent stake, while the ceiling for individuals is 5 per cent.
Meanwhile, senior Maruti executives will be visiting the US and Europe for holding roadshows.
Japanese major Suzuki Motor Corporation holds about 54.2 per cent stake in Maruti Udyog. The balance 45.8 per cent stake is held by the Union government.
The government is planning to offload a 25 per cent stake in the company through the IPO. The offering will be through the bookbuilding route.
About 60 per cent of the 72.2 million shares being divested has been earmarked for institutional investors, 25 per cent for retail investors and the balance 15 per cent has been targeted at wholesale investors.
The government can exercise its call option on the balance 20.8 per cent between 4 to 24 months after the date of listing.
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