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Scooters India to float public issue

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Our Regional Bureau Hyderabad
Last Updated : Feb 06 2013 | 7:14 AM IST
Scooters India Ltd (SIL), a Central government enterprise engaged in the production and marketing of three-wheelers under the brand name Vikram, is planning to come out with a public issue in its efforts to fulfill the Securities and Exchange Board of India (Sebi) norm that there should be a minimum of 25 per cent free float for a listed company.
 
According to SIL chairman and managing director P K Datta, the public holding at present is just 3 per cent in the Rs 44-crore equity of the company. In the current fiscal, to fulfill the Sebi norm, "SIL will be initiating the process of coming out with a public issue," he said speaking on the sidelines of a press conference here yesterday.
 
Earlier, Datta told newspersons that SIL, which had recently set up a modern vehicles painting facility at a cost of Rs 14 crore, was talking to an Italian and also a Chinese firm for possible technical collaboration for strengthening the technical capability of the company.
 
SIL's plans for the future include production of a 'Quarter Cycle' (adding one more wheel) in a couple of years and expansion of its existing production capacity of 16,000 three-wheelers a year.
 
Till 2002, he said, the Union government had been considering disinvestment in SIL. Now, the company not only wiped out its accumulated losses but also posted a net profit of Rs 2 crore on a turnover of Rs 160 crore last year. The company's turnover was expected to increase to Rs 180 crore in the current financial year.
 
Lucknow-based SIL, which has a strong presence in the northern markets, is making a foray into the southern states.
 
It has recently opened its office here, which would cater to the markets of Andhra Pradesh and Karnataka. "The southern market for three-wheelers is huge and we want to exploit this potential," Datta said.
 
SIL was incorporated on September 7, 1972, by procuring plant and machinery from Innocenti of Italy. It started manufacturing scooters in February 1975 under the brand name 'Vijai'. The company discontinued production of two-wheelers and concentrated on manufacturing three-wheelers since 1990.
 
It is currently producing five models of three-wheelers that run on diesel, petrol, CNG, LPG and electricity. The company also possesses world rights for the brand name Lambretta.

 
 

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First Published: Sep 13 2005 | 12:00 AM IST

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