The Central government on Sunday stated that it has invited expressions of interest (EoI) for the strategic sale of 26 per cent stake in Bharat Earth-Movers Ltd (BEML).
Shares of BEML surged almost 8 per cent on Monday following the government’s announced of stake sale. Its shares opened 7.7 per cent greater to touch an intraday higher of Rs 1,050 points. They have, having said that, pared gains and about 11 a.m. the shares have been trading at Rs 1,007.00, greater by Rs 32.75 or 3.36 per cent from its earlier close.
The government at the moment holds 54.03 per cent stake in BEML, which is a ‘Miniratna’ Category-1 Public Sector Undertaking, beneath the administrative manage of Ministry of Defence.
The Twitter manage of the Secretary, Department of Investment and Public Asset Management tweeted saying, “Govt has issued the PIM/EOI for disinvestment of 26 per cent equity share capital of BEML Ltd along with transfer of management control. Disinvestment will be through a two-stage competitive bidding process,” the tweet study.
Incorporated on May 11, 1964, BEML operates beneath 3 important organization verticals — mining and building, defence, and rail and Metro.
The Centre appointed SBI Capital Markets Ltd (SBICAP) as its transaction advisor to advise and handle the strategic disinvestment approach, BEML stated in a regulatory filing.
According to the filing the disinvestment approach is to be implemented via open competitive bidding route. And the interested bidders who meet the specifications as per the preliminary info memorandum may possibly submit their EOIs on or prior to 5 p.m. of March 1, 2021.
Companies, LLPs and funds eligible to invest in India can participate in the disinvestment approach. The minimum net worth of a corporation or a consortium necessary to submit EoIs is Rs 1,400 crore, it stated.
As per the Preliminary Information Memorandum (PIM), non-operational or surplus land assets will be hived-off and excluded it from the approach of strategic disinvestment.
(with agency inputs)