The market is abuz with rumours that LML's Indian and foreign promoters, Piaggio of Itlay, have made an out-of-court settlement on the various claims made by the two partners in the International Court of Arbitration. The rise in the price is accompanied by huge volumes. In the last three trading sessions, average volume has been around 12 lakh as against a daily average of one lakh shares. As per a an NSE broker, ``With the rumours that talks between the two promoters are on for an out-of-the-court settlement have helped in removing the dark clouds which were hovering on the scrip.'' The scrip has regained its lost ground. The scrip in the month of October had fallen from Rs 75 to Rs 47 on account of on-going tussle between two promoters.

The Singhanias, who manage LML, have filed a claim of US $ 71 million against Piaggio in International Chamber of Commerce(ICC) on the basis of various alleged breaches in the joint venture agreement. Piaggio on the other hand has filed a counter claim of US $ 140 million against LML in the ICC for breach of the joint venture agreement by the Singhanias and LML.

Earlier, the Singhanias had gone to the Kanpur civil court when they decided to exercise their option given in the joint venture to buy out the 23.6 per cent Piaggio stake in the company based on the average price of the share in the last three years. Piaggio had contested the Singhania's right to buy out its holding. Piaggio and the Singhanias control 23.6 per cent each in LML Ltd with the rest being held by the public and financial institutions.

Even the expectation of company announcing better results than its competitors for the year ended September 30, 1998 has also contributed to the renewed interest in the stock. As per an analyst with a leading brokerage house, ``The company should announce a net profit of over Rs 30 crore for 1997-98.'' For the six month period ended March 31, 1998 the company achieved a net profit of Rs 17 crore as against its full year profit of Rs 20 crore in 1996-97.