The shares of the 50-year-old automobile legacy brand rose 5 percent upper circuit to Rs 64.93 per share on Friday trade after the company rolled out the delisting offer for the shareholders on the exchange before the company shut down permanently.
At 10:55 a.m., Scooters India Ltd shares hit a 5 percent upper circuit from the previous close price. The company has a market capitalization of Rs 279 crore.
According to the company’s exchange filing, The company released a letter of offer for delisting their shares from the stock exchange. The delisting offer will be available from December 26, 2023, until April 8, 2024. The last date for verifying and accepting shares by the acquirer is April 18, 2024.
The Company has a Paid-up Capital of Rs. 87,27,38,188, divided into 8,72,72,255 Equity Shares with a Face Value of Rs 10/- each. The Promoters’ Shareholding in the Company is 93.87% and the public holding is merely 6.13%.
The Exit Price for the Delisting Offer has been determined as Rs 31.78 per Equity Share for the Delisting Offer for fully paid-up Equity Shares from the Public Shareholders of the Company by the Acquirer.
In 2021, the Indian government approved the closure of Scooters India due to substantial losses over the last two decades.
In recent months, the UP government proposed a plan to set up an EV park on 70-acre land owned by Scooters India out of 140 acres of land, while Ashok Leyland has selected the remaining 70 acres to set up an e-bus manufacturing unit.
As per the shareholding pattern, the company promoter holds a 93.87 percent stake in the company, while a 2.24 percent stake is held by retail investors and domestic institutional investors hold a 3.88 percent stake.
The company shares have delivered a multibagger return of 119 percent in the last six months, This shows that a shareholder investment of Rs 1 lakh in the company would be worth Rs 2.19 lakhs in the last six months.
Scooters India is engaged in designing, developing, manufacturing, and marketing a broad spectrum of conventional and non-conventional fuel-driven 3-wheelers.
Scooters India Ltd is a PSU under the Ministry of Heavy Industries, Government of India. The company is engaged in the production of conventional and non-conventional fuel-driven 3-wheelers. The Company exports to countries like Germany, Italy, Sudan, Nigeria, Nepal, and Bangladesh.
The company marketed its Scooters under the brand name Vijai Super for the domestic market and Lambretta for the overseas market. It added one more wheel to its product range and introduced three-wheelers under the brand name VIKRAM/LAMBRO.
However, in 1997, strategically, the company discontinued its two-wheeler production and concentrated only on manufacturing and marketing of 3-wheelers. `
Written by Omkar Chitnis
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