BEML demerger by October; financial bidding to follow
Real Estate

BEML demerger by October; financial bidding to follow

The government is likely to invite financial bids for the privatisation of BEML in the December quarter, an official said. Earlier this month, the corporate affairs ministry approved the hiving off the firm’s land and non-core assets to BEML Land Assets Ltd.

The official said that every shareholder of BEML will get shares in BEML Land Assets and the process of demerger would be completed by the end of September or early October. "Once the demerger process gets over by September-end or by early October, the financial bids for strategic sale of BEML would be invited," an official said, adding that the draft share purchase agreement too would be finalised by then.

In January last year, the government invited preliminary bids for selling 26 per cent stake in BEML along with the management control. Multiple Expressions of Interest (EoIs) were received by the government, after which the process of demerger was initiated following comments from investors. Once the demerger is complete, financial bids would be invited.

The government currently holds 54.03% in BEML, which is a defence public sector undertaking. At the current market price, sale of a 26% stake in BEML will fetch around Rs 20 billion.

In 2016, the Union Cabinet approved the strategic disinvestment along with transfer of management control of the company.

See also:
Adani to launch open offer to acquire stake in ACC
PM lays foundation stone of projects worth Rs 4400 crore in Bhuj


The government is likely to invite financial bids for the privatisation of BEML in the December quarter, an official said. Earlier this month, the corporate affairs ministry approved the hiving off the firm’s land and non-core assets to BEML Land Assets Ltd. The official said that every shareholder of BEML will get shares in BEML Land Assets and the process of demerger would be completed by the end of September or early October. Once the demerger process gets over by September-end or by early October, the financial bids for strategic sale of BEML would be invited, an official said, adding that the draft share purchase agreement too would be finalised by then. In January last year, the government invited preliminary bids for selling 26 per cent stake in BEML along with the management control. Multiple Expressions of Interest (EoIs) were received by the government, after which the process of demerger was initiated following comments from investors. Once the demerger is complete, financial bids would be invited. The government currently holds 54.03% in BEML, which is a defence public sector undertaking. At the current market price, sale of a 26% stake in BEML will fetch around Rs 20 billion. In 2016, the Union Cabinet approved the strategic disinvestment along with transfer of management control of the company. See also: Adani to launch open offer to acquire stake in ACCPM lays foundation stone of projects worth Rs 4400 crore in Bhuj

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code