The Hindu Business Line : Scooters India may go public by fiscal-end

SCOOTERS India Ltd (SIL), the Rs 160-crore public sector automobile company, plans to come out with a public issue before the fiscal-end, according to its Chairman and Managing Director, Mr P.K. Datta.

Though the divestment measures initiated by the Government earlier could not materialise, the company has to ensure that the public shareholders hold at least 25 per cent of its equity capital so as to adhere to the new minimum public holding norms of the SEBI.

Speaking to newspersons on Monday, Mr Datta said that the company would go in for issue of fresh equity shares to meet the SEBI norms on public holding. The issue proceeds would enable the company to expand its production capacity and further strengthen its engineering and R&D capabilities.

SIL, which is also engaged in manufacturing three-wheeler load carriers, currently has a paid-up equity capital base of Rs 44 crore, while its net worth amounts to Rs 54 crore.

The Union Government holds 97 per cent of its equity, while public shareholders have a nominal stake of 3 per cent.

Though enjoying a 95 per cent market share in some of the northern States, Scooters India has not been able to expand production capacities for several years owing to paucity of funds, Mr Datta said.

The company currently has a wide range of three-wheelers that run on fossil fuels such as diesel and petrol as well as on non-conventional fuels such as CNG, LPG, and electricity.

Aimed at further expanding its product range and improve the fuel efficiency levels of its three-wheelers, SIL has initiated negotiations with couple of leading automobile giants overseas in the area of engine technology, including Italian and Chinese companies, Mr Datta said.

He expects to forge alliances with the foreign majors before the year-end.

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