NEW DELHI: On Sunday, the government invited preliminary offers for the strategic sale of 26 participation percentage With to transfer control of defense management PSU BEML. “The government has issued the PIM / EOI for the divestment of 26% of BEML Ltd’s share capital together with the transfer of management control. The divestment will be done through a competitive bidding process in two stages.” DIPAM Secretary Tuhin Kanta Pandey tweeted.
Bidders can submit their Expression of Interest (EoI) to purchase the stake in BEML before March 1, according to the Preliminary Information Memorandum (PIM) issued by the Department of Investment and Management of Public Assets (DIPAM).
At the current market price, a 26 percent sale could generate around Rs 1 billion to the treasury. BEML shares closed at Rs 974.25 on Friday.
BEML participates in sectors such as defense, railways, energy, mining and infrastructure.
The total revenue from the company’s operations was Rs 3,028.82 crore in the 2019-20 fiscal year.
OSE Capital markets has been appointed as an advisor by the Government of India (GOI) to advise and manage BEML’s strategic divestment proposal.
BEML has an order book of Rs 9,795 crore as of March 31, 2020.
The government has decided “in principle” to divest BEML’s 26 percent stake through a strategic sale with transfer of management control. The government has a 54.03 percent stake in the company.
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