The divestment ministry is approaching the Foreign Investment Promotion Board for permission to allow foreign institutional investors, non-resident Indians and overseas corporate bodies to participate in the ensuing public offer for government stake in Maruti Udyog Limited.

"We are seeking generic permission for FIIs registered with Securities and Exchange Board of India, NRIs and OCBs to enable them pick equity in MUL," senior officials in the ministry told PTI.

Confident of mopping up atleast Rs 800 crore (Rs 8 billion) from the issue for 25 per cent equity in JV with Japanese Suzuki Motor Corporation, they said that the issue would be a domestic one, but on international platform.

The divestment ministry expects to file the prospectus before the market regulator SEBI this month for completing the IPO by the 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 2,300 a share as part of the agreement and the 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.