The cabinet has deferred the proposal due to the absence of Heavy Industries and Public Enterprises Minister Praful Patel in the meeting.
Scooters India has locked in lower circuit of 5% at Rs 40.25 on reports that the government deferred the revival plan of the company.
The stock opened at Rs 39.35 and has seen around 4,300 shares changing hands on the counter. There are pending sell orders for 24,162 shares on the Bombay Stock Exchange.
“The Cabinet has deferred the proposal for the revival of Scooters India due to the absence of Heavy Industries and Public Enterprises Minister Praful Patel in the meeting,” the PTI report suggests.
The stock of state-owned company had surged 58% in past seven trading sessions on revival hope.
The Department of Heavy Industries had proposed a revival package of more than Rs 200 crore. The revival includes both cash and non-cash assistance by the Government.
Check out how key stocks stakc up on the technical parameters with Ravi Nathani, technical analyst, Nsetoday.com.