The Centre on Sunday invited expression of interest (EoI) from strategic investors for 26 per cent stake in BEML, along with management control, adding one more central public sector enterprise (CPSE) to the pipeline of state-owned firms being put on the block. The last date for filing EoI for BEML is March 1, 2021.
At current market prices, the 26 per cent stake in BEML is worth about Rs 1,055 crore. Currently, the Centre holds 54.03 per cent in the CPSE, which was formerly known as Bharat Earth Movers.
The balance stakes are held by mutual funds (19.21 per cent), individuals (15.74 per cent), foreign portfolio investors and financial institutions. The buyer of 26 per cent in BEML will have to make an open offer to buy another 26 per cent in the company, according to Sebi rules. The Bengaluru-based company operates under three major business verticals – mining & construction, defence & aerospace and rail & metro, by providing total solutions.
The disinvestment will be through a two-stage competitive bidding process. Shortlisted firms in the first phase will be asked to submit financial bids. Non- core land and other assets will be hived off and will not be a part of the proposed disinvestment.
The company, with a staff strength of 6,602, made a net profit of Rs 68 crore in FY20 as against Rs 64 crore in FY19. According to EoI terms, companies, LLPs and Funds eligible to invest in India can participate subject to minimum net worth requirement of Rs 1,400 crore. —FE
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines