Divestment of the government's 25 per cent stake in Maruti Udyog Ltd through initial public offer will be completed in the first week of June, Divestment Minister Arun Shourie said in New Delhi.

The minister apprised Prime Minister Atal Bihari Vajpayee of the latest developments on the divestment front.

After obtaining necessary clearances from different authorities, MUL has filed the prospectus with market regulator Securities and Exchange Board of India for a proposed public offer to divest the government's 25 per cent equity in it.

The much delayed IPO, targeted to have been completed during the last financial year would now take off in June.

At present, Suzuki Motors Corp of Japan holds 54.2 per cent of equity in MUL.

In its draft prospectus recently filed with the Sebi, SMC outlined its plan for the company, which it wanted to develop into a hub for its international business.

The draft prospectus stated that MUL has recently acquired the capability to conduct minor and major facelifts, and upgrade products in terms of technology and features.  

Last year, the government ceded control of MUL to Suzuki following a Rs 400 crore (Rs 4 billion) rights issue. Suzuki acquired about four per cent equity in the company for a consideration of around Rs 1,400 crore (Rs 14 billion) including a "renunciation premium" of Rs 1000 crore (Rs 10 billion).