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 demerger of land and non-core assets of BEML 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," the official told PTI.
The financial bids are expected in the October-December quarter and the draft share purchase agreement too would be finalised by then, the official added.
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 per cent in BEML, which is a defence public sector undertaking.
At the current market price, sale of the government's 26 per cent stake in BEML will fetch around Rs 2,000 crore.
In 2016, the Union Cabinet approved the strategic disinvestment along with transfer of management control, of the company.
So far, the government has raised Rs 24,544 crore through disinvestment in the current financial year against a full year budget target of Rs 65,000 crore.
(This story has been published from a wire agency feed without any modifications to the text. Only the headline has been changed.)
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.