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
Equipment

BEML Wins GeM Award for Highest MSE Order Value

BEML Limited has received the “Maximum Order Value to MSEs” award at the 10th Foundation Day celebrations of the Government e-Marketplace (GeM) held at Bharat Mandapam, New Delhi.Union Minister of Commerce and Industry Piyush Goyal presented the award, which was received on behalf of BEML by Anil Jerath, Director (Finance).The recognition acknowledges BEML's efforts to strengthen procurement from Micro and Small Enterprises (MSEs) through the GeM platform.BEML said its procurement initiatives are aimed at encouraging greater participation of MSEs in public procurement and supporting the gr..

Next Story
Equipment

BKT to Showcase Advanced Off-Highway Tyres at Bauma ConExpo

Balkrishna Industries Ltd (BKT) will showcase its latest off-highway tyre solutions at Bauma ConExpo India 2026, scheduled from September 15-18 at the India Expo Centre, Greater Noida.The company will display a range of application-specific tyres for construction, mining and industrial operations at Hall 12, Booth No. 1. Key products will include the EARTHMAX SR 30 for loaders and articulated dump trucks and the AIROMAX AM 27 for mobile cranes.BKT will also showcase MINE FORCE, EARTHMAX EXPERTO GD1, XL GRIP NEO, DYNA HAUL, CONSTEER and EARTHMAX SR423. The tyres are designed to operate under he..

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement