Maharashtra Scooters hit the 10% upper deck at Rs 86.95 today boosted by reports that Kolkata-based jute industrialist Joy Kankaria is eyeing a 27% stake in the company.

By 10:05 IST, the stock of the scooter maker, which is a joint venture between Bajaj Auto and Western Maharashtra Development Corporation (WMDC), recorded volumes of just 200 shares on BSE. However, at that point, the total outstanding buy position on the counter was 73,273 shares. The stock of Maharashtra Scooters (MSL) has now risen 42.5% from Rs 61 on 14 May 2003.

It has been reported that Joy Kankaria has made an expression of interest (EoI) to acquire the Maharashtra government's 27% stake in Maharashtra Scooters for Rs 200 per share, a premium of 130% to the current trading price of the scrip.

MSL, manufactures the Chetak and Super range of scooters - which in turn is marketed and sold by Bajaj Auto.

Western Maharashtra Development Corporation and Bajaj Auto jointly promote MSL. The company was incorporated at Pune in June 1975. The company, at the time of inception, entered into a technical knowhow agreement with Bajaj Auto, the tenure of which was specified as 10 years from the date of commencement of commercial production or till the company achieved a total production of 3 lakh scooters, whichever was later.

Commercial production at its Satara plant commenced in August 1976. The company later expanded its installed capacity of motorised two-wheelers (350 cc engine capacity). The company has also installed a pre-treatment-cum-cathodic electro deposition plant, which is eco-friendly.

MSL has also been awarded ISO 9002 and ISO 14001 from Bureau Veritas Quality International (BVQI).

For the fourth quarter ended 31 March 2003, MSL posted a loss of Rs 2.21 crore compared to a net profit of Rs 2.51 crore in the corresponding period of the previous year. Net sales fell 70.05% to Rs 8.72 crore from Rs 29.12 crore in MQ 2002.

As on 31 March 2003, the promoters' holding in MSL was 51%, while the public and institutions held 37.98% and 2.04%, respectively.