While the ailing company, Scooters India has been more of a liability to the government than a asset, the stock of the company surged by close to 5% as soon as the news of companies like M&M and Atul Auto are interested in buying deals for the same.

It is to be mentioned here that the company is owned 95 percent by the government and the day the news hit the markets, the stock opened up 4.74 percent and rose to 4.88 percent at 39.75 rupees, its maximum daily limit.

It may be noted here that the loss-making Scooters India was best known for selling the Vijai Super and Lambretta two wheeler brands but as it discontinued two wheeler production in 1997, it now manufactures only three wheelers.

It has learned from the sources that the government is planning to sell 74 percent in Scooters India.

For the uninitiated, Mahindra, which has signed a preliminary agreement for acquiring Korean automaker Ssangyong Motor, is looking at a majority stake in Scooters to add to its three-wheeler portfolio in the domestic circuit.