Company sources, however, dismissed rumours of Bajaj Auto increasing its stake in the company. Bajaj Auto has been reported to be keen on hiking its stake in MSL.

For the year ended March 31, 1999, the company achieved a modest growth despite difficult conditions in the scooter segment. Sales moved up by 10.31 per cent to 152,595 units during the year. Sales and other income recorded an increase of 16 per cent over the previous year from Rs 275.84 crore to Rs 320.98 crore.

Scooter production was up 5.96 per cent from 145,016 units last year to 153,662 units during 1998-99. After paying out Rs 2.29 crore as dividend, the company will transfer Rs 14.60 crore to reserves which, in turn, will increase to Rs 127.85 crore.