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Scooters India Stake Sale Expected To finish This Fiscal
A senior government official said that the divestment process of Scooters India Ltd is expected to be completed within this fiscal itself.
The Cabinet had approved divestment of the government's whole 95.38 per cent stake in Scooters India Ltd in last week and it has been suffering losses from 2002-03 and its complete net worth eroded by 2008-09. Adding, in March, 2009 the company was declared sick and went to the Board for Reconstruction of Public SectorEnterprises (BRPSE). In July, the monsoon session of Parliament is likely to begin.
The official said that once the approval is provided, invitation of bids and due diligence processes will kick off and the process could be completed within six months.
The balance equity of about 5 per cent will remain with banks, financial institutions, corporate bodies and others after the government completely sells its stake.
Further, the government is hoping that some foreign players may show interest as the auto sector comes under automatic 100 per cent foreign direct investment. The company really wants a big player to come and revive the company.
Scooters India Ltd which was incorporated in 1972 had started commercial production of scooters under the brand name of Vijai Super for domestic market and Lambretta for overseas market. And it ventured into three-wheelers with the Vikram brand. But, in 1997 the company stopped two-wheeler production and from that it has been into manufacturing and marketing of 3-wheelers only.
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