New Delhi: The government has begun the process for the disinvestment of its 15 percent share in state-run BDL (Bharat Dynamics Limited) on Tuesday, a notification posted on a government website showed. In the notification, the Department of Investment and Public Asset Management (DIPAM) sought a request for proposals (RFPs) from merchant bankers and selling brokers for the partial disinvestment of the Centre's shares in BDL.
The news comes as the Centre is racing against time to end up as close to its disinvestment target of Rs 1.05 lakh crore as possible before the end of financial year 2019-20.
The DIPAM notification said that the government intends to offload 15 percent share out of the 87.75 percent it owns in BDL through an offer for sale. "The Gol intends to disinvest 15 percent paid-up equity capital of BDL out of its shareholding of 87.75 percent, through 'Offer for Sale' (OFS) method of shares by promoters through the stock exchanges' as per Securities and Exchange Board of India (SEBI) Rules and Regulations," it said.
The notification also said that the government is considering allotting shares to "eligible and willing employees of BDL at a discount to the issue/ discovered price (lowest cut off price) up to a maximum of a certain percentage of the OFS size subsequent to the completion of the transaction under OFS." It added, "The percentage and extent shall be decided in due course. Merchant bankers and Selling Brokers will be required to render such assistance as may be required in this connection." The Profit after Tax (PAT) for the fiscal year 2018-19 was Rs 422.59 crore. As on March 31, 2019, BDL has a net worth of Rs 2,268.55 crore.
BDL, a Miniratna enterprise under the Ministry of Defence, was established in Hyderabad in the year 1970 to be a manufacturing base for guided missiles and allied defence equipment.