The government’s stake sale in loss making three-wheeler maker Scooters India Ltd (SIL) is likely to be completed within this [RTF bookmark start: DDE_LINK]financial year[RTF bookmark end: DDE_LINK] and the process will be kicked off with the seeking of approval of Parliament in the upcoming monsoon session.
“The divestment process of SIL is expected to be completed within this financial year itself,” a senior government official said.
Last week, the Cabinet had approved divestment of the government’s entire 95.38 per cent stake in SIL, which has been suffering losses since 2002-03 and its entire net worth completely eroded by 2008-09.
A resolution to sell the 95.38 per cent stake will be introduced in the monsoon session of Parliament, the official said. “Once the approval is given, invitation of bids and due diligence processes will kick off and the process could be completed within six months,” the official said, adding, the valuation of the company could be known only after that.
After the government completely sells its stake, the balance equity of about five per cent will remain with banks, financial institutions, corporate bodies and others.
While Rajkot-based Atul Auto and Mahindra & Mahindra have expressed their interest in acquiring SIL, it is understood that no new players have come forward as prospective buyers. The government, however, is hoping some foreign players may show interest.
