New Delhi: The government has invited expression of interest (EoI) to sell its entire stake with transfer of management control in loss-making listed firm Scooters India Ltd (SIL), which manufactures three-wheelers under the brand name ‘Vikram’.
In a global invitation, the heavy industry ministry has asked interested parties to submit the EoI on or before 7 May 2018. SIL is a public sector unit (PSU) under the administrative control of the ministry.
The government had ‘in-principle’ decided to disinvest 100% of its equity shareholding in SIL (which is equivalent to 93.74% of the total paid-up equity share capital of SIL) through strategic disinvestment with transfer of management control.
The government, through the department of investment and public asset management, has appointed Resurgent India Limited as its advisor to manage the transaction. The board of directors of SIL, in its meeting held on 26 February, had accorded its consent to hive off non-core land of 89.69 acres out of total land of 147.499 acres subject to approval of shareholders and other regulatory authorities as applicable.
In 1975, SIL started its commercial production of scooters under the brand name of Vijay Super for domestic market and Lambretta for overseas market. However, in 1997, SIL strategically discontinued its two-wheeler production and concentrated only on manufacturing and marketing of three-wheelers.