Punjab Tractors sale: Cong reaps divestment harvest

Said Vini Mahajan, Director, Disinvestment, Punjab: ‘‘Lingering doubts about the state’s disinvestment policy have been finally cleared. We are all very happy over the successful outcome of the process which was transparent and smooth. It’s a very positive development indeed.’’

Punjab Tractors, the second largest tractor maker after Mahindra & Mahindra, has been known as the industry outperformer since inception. During the first half of 2001-02, PTL increased its market share from 18.5 per cent to 21.4 per cent. With the total industry volumes falling by 16.6 per cent, the sales of PTL fell only 3.1 per cent. Punjab Tractors is promoted mainly by Punjab State Industrial Development Corporation Ltd and has acquired the second highest market share in the tractor segment from 9.1 per cent in 1975. The bidding and winning by CDC, a multilateral financial institution, would have come as a surprise to many in the industry. Several tractor majors who were aggressive initially could not make it in the final round.

The bids of other pre-qualified parties, including Mahindra & Mahindra, TAFE, Eicher Tractors, Escorts Tractors, SAME, New Holland, Kirloskar Oil Engines and Warburg Pincus, were not received by the PSIDC by the scheduled time for acceptance of bids on Friday.

PTL’s confidential information memorandum was circulated to all qualified interested parties who, however, failed to give their bids. Eleven parties had put in their expressions of interest. The state government had invited bids last December for sale of its stake in the company.

Mahindra & Mahindra was considered a front-runner for the stake till it announced to withdraw from the race earlier today.

The stock opened on a firm note at Rs 165.70, touched a high of Rs 167.50 but got battered after news trickled in and closed at Rs 158.40. On the National Stock Exchange (NSE), PTL lost ground by 3.33 per cent to end the day at Rs 158.05 from its previous close of Rs 163.50.