26% Of India’s Biggest Defense Manufacturing Firm Will Be Sold To Private Firms: Disinvestment Of BEML
BEML Limited, previously Bharat Earth Movers Limited, is an Indian Public Sector Undertaking, with headquarters in Bengaluru, Karnataka, India. It manufactures a variety of heavy equipment, such as that used for earth moving, transport and mining.
The Disinvestment Plan:-
Now, the central government has announced its decision to divest 26 percent out of its total 54.03 percent stake in the state-owned defense and engineering company BEML Ltd.
BEML has notified the decision to BSE.
The Department of Investment and Public Asset Management (DIPAM) has confirmed the development and said that the disinvestment will be through a two stage competitive bidding process and the Preliminary Information Memorandum (PIM)/ Expression of Interest (EOI ) has been issued for disinvestment of 26% equity share capital of BEML along with transfer of management control.
The government currently holds 54.03 per cent stake in the Bengaluru-headquartered public sector. BEML operates under 3 major business verticals – viz. Mining & Construction, Defense, and Rail & Metro.
The Disinvestment Process:-
This disinvestment process will be implemented through open competitive bidding route. Interested Bidders (IBs) who meet the eligibility criteria mentioned in the PIM, need to submit their EOI on or before 1st March, 2021.
DIPAM has appointed SBI Capital Markets Limited (SBICAP) as its Transaction Advisor to advise and manage the strategic disinvestment process.
DIPAM is already in the process of completing the disinvestment in three government owned public sector undertakings (PSUs) – BPCL, Air India and Shipping Corporation.