Scripscan:Scooters India Ltd
cmp:28
Code:505141
Story:Located near Lucknow, Scooters India is an integrated automobile plant, engaged in designing, developing, manufacturing and marketing a broad spectrum of conventional and non-conventional fuel driven 3-wheelers.Company’s plant owes its origin to M/s. Innocenti of Italy from which it bought over the plant and machinery, design, documentation, copyright etc. The company also possesses the world right of the trade name LAMBRETTA / LAMBRO.The company has its own marketing network of Regional Sales Offices all over India, catering to customer’s requirements in the areas of sales and services.Government holds 95.38 per cent in Scooters India and according to the present buzz the Govt is planning to divest its stake in the ailing counter.Government was earlier considering a joint venture with private sector for revival of SIL, which has piled up a loss of Rs 17 crore in the fiscal 2011 but that never materialized.Last year, the ministry had approved a 74% stake sale in the loss-making two- and three-wheeler maker Scooters India.The likes of Mahindra & Mahindra,Atul auto ltd etc was interested in buying the government's stake in the company but there were some issues which were raised by various other ministries and the process was stalled. It is now expected that a fresh look will be taken into the matter.Buyers would be interested in the ailing company as it owns 150 acres of land that may fetch more than its accumulated losses of around 826 crore. The government had infused around 600 crore in the company in 1996 but the move failed to revive the company.Theres hardly any liquidity in the counter as majority of the shares are being held by the Govt.Scooter india may well continue to buzz owing to its assets.Watch out for more action in the counter.
