Govt invites global bids for BEML disinvestment, will sell 26% stake along with management control
Govt owns a 54% stake in BEML but plans to give away the management control to the new buyer
New Delhi: As part of the mega-privatisation and disinvestment plan of Prime Minister Narendra Modi government, the process of BEML disinvestment has also been initiated. Govt on Sunday invited initial bids from private firms for a sale of 26% stake along with management control in the defence and engineering public sector undertaking BEML ltd. Govt has appointed SBI Capital Markets Limited as its transaction adviser for the proposed divestment of the BEML stake. Although the Govt owns a 54% stake in BEML but plans to give away the management control to the new buyer.
According to a statement released by the Secretary DIPAM (Department of Investment and Public Asset Management) Tuhin Kanta Pandey (IAS) the sale will be done through an open competitive bidding route where interested bidders will be required to submit an expression of interest by March 1. BEML disinvestment had officially begun a year ago after govt had appointed M/s. CBRE South Asia Pvt. Ltd. and M/s. JLL Property Consultants (India) Pvt. Ltd. as consultancy firms for monetisation of identified assets of BEML Ltd on January 10, 2020. However, the process got delayed due to the pandemic.
Govt has issued the PIM/EOI for disinvestment of 26% equity share capital of BEML Ltd along with transfer of management control.Disinvestment will be through a two stage competitive bidding process. pic.twitter.com/aE9RJjsD5M
— Secretary, DIPAM (@SecyDIPAM) January 3, 2021
BEML Limited, formerly known as Bharat Earth Movers Limited, was established in May 1964 as a PSU for the manufacture of Rail Coaches & Spare Parts and Mining Equipment at its Bangalore Complex. The company has partially disinvested and presently the government owns 54 percent of total equity and rest 46 percent is held by Public, Financial Institutions, Foreign Institutional Investors, Banks and BEML Employees. BEML plays a pivotal role in serving India’s core sectors like defence, rail, power, mining and infrastructure. The company started with a modest turnover of Rs 5 crore in1965 and the total turnover of the company is now more than Rs 3,500 crore.
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