BEML disinvestment worth about Rs 1000 Cr kickstarts

By Frontier India News Network , 2021-01-03 0 Comments

The Indian Government has begun the divestment process of the Bharat Earth Movers Limited (BEML) with the issue of Preliminary Information Memorandum (PIM) / Expression Of Interest (EOI). The Govt proposes to “divest equity share capital of BEML Ltd along with transfer of management control. Disinvestment will be through a two-stage competitive bidding process,” says the government release. The proposed stake sale by the govt is 26% or about Rs 1000 crores.

The Government of India currently holds 54.03% of the total equity share capital of BEML. SBI Capital Markets Limited (SBICAP) has been appointed as the transaction advisor to advise and manage the disinvestment process. It remains to be seen if the govt will discount the price as in case of Hindustan Aeronautics Limited (HAL) which was about 15 per cent below the Follow on Public Offer (FPO) price. The small investors had suffered because of the move. Te bidding companies have to submit their EOI’s by 1st March 2021.

BEML is classified as a Miniratna Category-I Public Sector Undertaking and is administered by the Ministry of Defence (MoD). Incorporated on 11th May 1964, BEML business activities include Mining & Construction, Defence, and Rail & Metro. BEML’s manufacturing units are located at Bangalore, Kolar Gold Fields (KGF), Mysore, Palakkad and Subsidiary – Vignyan Industries Ltd, in Chikmagalur District. The land for these units has been allotted free of charge by the respective state governments.