Privatisation: BEML EoI submission deadline closes with multiple bidders showing interest

• The government had extended the last date for EoI submission for privatisation of defence PSU BEML from March 1 to March 22

• Currently, the government holds 54.03 percent stake in the defence PSU, out of which it wants to disinvest 26 percent

New Delhi: The deadline for the submission of Expressions of Interest (EoI) for the privatisation of state-run BEML Limited closed on Monday with multiple bidders turning up ready to throw their hats in the ring. In a tweet, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said, "Multiple Expressions of Interest received for the privatisation of BEML. The transaction will now move to the second stage." As a second wave of COVID-19 infections hit several countries across the globe and states within India, the government had extended the last date for EoI submission for privatisation of defence PSU BEML from March 1 to March 22.

BEML privatisation: Govt floated PIM on Jan 4

On January 4, the government had invited initial bids from private firms for the sale of 26 percent stake, along with management control, in the defence and engineering public sector undertaking BEML Ltd. The government has appointed SBI Capital Markets Limited as its transaction adviser for the proposed divestment of the BEML stake. Currently, the government holds 54.03 percent stake in the defence PSU. The proposal for the strategic disinvestment of 26 percent share in BEML had received a nod from the Cabinet Committee on Economic Affairs in October 2016. 

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The backdrop

Earlier on March 5, Defence Watch had reported that BEML Limited has appointed Deloitte Haskins & Sells LPP for the demerger of non-core assets ahead of its privatisation. The demerger and monetisation of non-core assets is a key process that will have to be completed before the defence PSU is disinvested. The idea behind the demerger is to separate the defence company from non-core liabilities to may add to the valuation of the company but may not be of much use to the new owner. 

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