The Centre on Sunday invited expression of interest (EoI) from strategic investors for 26% stake in BEML, along with management manage, adding a single more central public sector enterprise (CPSE) to the pipeline of state-owned firms getting place on the block. The final date for filing EoI for BEML is March 1, 2021.
At existing market place rates the 26% stake in BEML is worth about Rs 1,055 crore. Currently, the Centre holds 54.03% in the CPSE, which was formerly identified as Bharat Earth Movers Ltd.
The balance stakes are held by mutual funds (19.21%), folks (15.74%), foreign portfolio investors and economic institutions.
The purchaser of 26% in BEML will have to make an open provide to get a different 26% in the organization, according to Sebi guidelines.
The Bengaluru-primarily based organization operates beneath 3 big small business verticals – mining & building, defence & aerospace and rail & metro, by delivering total options.
The disinvestment will be by means of a two-stage competitive bidding procedure. Shortlisted firms in the initially phase, will be asked to submit economic bids. Non- core land and other assets will be hived off and will not be a aspect of the proposed disinvestment.
The organization, with a employees strength of 6,602, produced a net profit of Rs 68 crore in FY20 compared with Rs 64 crore in FY19.
According to EoI terms, providers, LLPs and Funds eligible to invest in India can participate topic to minimum net worth requirement of Rs 1,400 crore. Consortium bidding is permitted with lead member to have minimum 51% stake in the consortium. Sole bidder/ lead Member of Consortium to have positive Profit just after Tax in at least 3 years out of instantly 5 preceding years.
Recently, the government received EoI from prospective purchasers for its 52.98% stake in BPCL (worth about Rs 44,000 crore at existing market place rates) and one hundred% in Air India. The sale of the national carrier could fetch the government only up to Rs 3,000 crore, post the buyer’s takeover of aspect of the airline’s debt. On December 22, the Centre invited EoI for its 63.75% stake in Shipping Corporation of India (SCI) worth about Rs 2,600 crore at the existing market place rates. The final outright sale of a CPSE by the government was carried out way back in FY04.
The disinvestment receipts so far this year have been about Rs 13,844 crore or 7% of the FY21 target Rs 2.1 lakh crore.