Govt appoints consultancy firms for BEML disinvestment

New Delhi: State-run BEML Ltd said on Friday that the Department of Investment and Public Asset Management (DIPAM) has appointed two consultancy firms for strategic disinvestment of BEML. The government has been looking to monetise assets of BEML to meet its disinvestment target for the financial year 2019-20. It said in a regulatory filing, "We wish to inform that the Department of Investment and Public Asset Management (DIPAM), Govt of India vide mail dt. 09.01.2020 intimated the Company that M/s. CBRE South Asia Pvt. Ltd. and M/s. JLL Property Consultants (India) Pvt. Ltd. have been appointed as Consultancy firms for monetisation of identified assets of BEML Ltd."

Stage set for BEML disinvestment

The government has initiated the process of strategic disinvestment of BEML Ltd. to the extent of 26 percent out of the govt shareholding of 54.03 percent with the transfer of management control to a strategic buyer. The transaction advisor, legal advisor and asset valuer have also been appointed as per the procedure and mechanism laid down for this purpose.

ALSO READ: BEML disinvestment: Govt invites global bids to sell 26% stake & mgmt control

The Expression of Interest (EOI) and Preliminary Information Memorandum (PIM) document have also been prepared by the appointed advisors and submitted to the Government, all of this a couple of months back.

BEML Limited

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.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)