Scooters India up 10% on disinvestment hopes

Scooters India is frozen at the 10% upper circuit limit at Rs 30.95 on reports that the government is planning to divest its stake in the company through the joint venture (JV) route.

The stock has rallied 21% in the last two trading sessions, from Rs 25.60, after minister for Heavy Industries and Public Enterprises Praful Patel said that the government is mulling divesting its stake in closed or terminally sick public sector enterprises.

The government holds a 95.38% stake in the company. 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 Rs 600 crore in the company in 1996 but the move failed to revive the company, the newspaper report suggested.

 

Last year, the ministry had approved a 74% stake sale in the loss-making two- and three-wheeler maker company.