Multibagger penny stock: President of India-backed PSE stock plans for voluntary delisting; get all the details!

The President of India holds a staggering 93.87 per cent stake in this automotive saga.

Embark on a nostalgic journey through the winding lanes of time, where the roaring engines of scooters once ruled the streets of India. In the nineties, when the allure of cars was a luxury reserved for the elite, two-wheelers emerged as the proud chariots of the middle class. Among them, scooters stood tall, gracing every household with their urban charm, simplicity, and familial embrace.

Picture this: a family of four, navigating the bustling streets on a scooter - a common sight that spoke of an era when Vespa and Lambretta, both hailing from Italian lineage, reigned supreme. Vespa, born under the wings of Bajaj, epitomized trendiness, often becoming the coveted dowry for prospective bridegrooms. Meanwhile, Lambretta, resembling a wise middle-aged companion, required a longer kick and a patient wait before its engine purred to life.

Amidst the ebb and flow of scooter chronicles, a phoenix emerged from the ashes of Lambretta's woes. In 1972, Scooters India swooped in to acquire the brand, designs, and the very essence of Lambretta. The birthplace of this transformation was the factory in Lucknow, where the iconic Vijay Super scooter came to life, boasting multiple avatars and spreading its wings across the country.

Vijay Super, with its extended chassis, became the family vehicle of choice, gracing households across the nation. Its popularity soared, especially in comparison to the elusive Bajaj models that were scarce due to the infamous License Permit Raj. While others paid a premium to black marketeers for immediate gratification, Vijay Super offered accessibility within a month of booking, making it the beacon of reliability.

Scooters India, not content with two-wheel marvels, expanded its repertoire to include three-wheelers named Vikram. These vehicles, colloquially known as "Bakaram" in Lucknow, once monopolized shared public transport in the absence of auto-rickshaws, navigating fixed routes and weaving through the tapestry of city life.

Fast forward to the present, and Scooters India, a government-owned automobile enterprise, stands at a crossroads. A new chapter unfolds as the company extends a voluntary delisting offer, seeking to acquire over 6.13 per cent of its equity shares from the public shareholders. The exit price of Rs 31.78 per equity share beckons, with an offer period stretching from December 26, 2023, to April 05, 2024.

The financial tale unfolds with consideration totaling Rs 16,99,66,622.28, and the anticipation builds as the last date for verification and acceptance of shares looms on April 26, 2024. Come April 30, 2024, the proposed date for payment of consideration, and the fate of Scooters India's future shall be sealed.

Intriguingly, the company's stock, currently trading at Rs 65.7, has witnessed a meteoric rise, delivering multibagger returns of 102 per cent in the past year. The plot thickens as it's revealed that the President of India holds a staggering 93.87 per cent stake in this automotive saga. As the wheels of time turn, the narrative of Scooters India takes yet another twist, leaving us captivated by the echoes of its past and the uncertainty of its future. The company has a market cap of Rs 574 crore and hence, this is considered as penny stock. 

Disclaimer: The article is for informational purposes only and not investment advice