TVS Motors has denied news reports that said it is going to buy out the assets of LML India. Earlier a private news channel, CNBC TV 18 had said that it is planning to buy the assets of LML.

The report quoted some sources and said that TVS will be buying the assets of one of the leading manufacturer of scooters in India. This was to happen since the company is planning to increase its portfolio in the scooters segment.

It also said that TVS was eyeing to have sales of 4.8 lakh units in scooters and that would be through its new brand- WEGO. TVS managed to sell 3 lakh units in the fiscal 2010.

Had the deal met success, it would have been the first inorganic takeover in India and would have helped it grab a share where the players are going down slowly.

LML, on the other hand, would have seen a way to exit from the market where it is making losses. Its assets are not manufacturing anything neither, are they selling.

The share price of LML went up. It went up by 1.31 per cent even though the market then was going down.