PSU Disinvestment: Union Government Invites Expressions Of Interest For 26% Stake Sale In BEML Along With Transfer Of Management Control

PSU Disinvestment: Union Government Invites Expressions Of Interest For 26% Stake Sale In BEML Along With Transfer Of Management Control
(Picture: BEML Web)

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.

Confirming the development, the Department of Investment and Public Asset Management (DIPAM) said that the Preliminary Information Memorandum (PIM)/ Expression of Interest (EOI ) has been issued for disinvestment of 26% equity share capital of BEML Ltd along with transfer of management control. Disinvestment will be through a two stage competitive bidding process.

The government currently holds 54.03 per cent stake in the Bengaluru-headquartered public sector undertaking that manufactures a variety of heavy equipment, such as that used for earth moving, metro coaches and mining. The company operates under 3 major business verticals - viz. Mining & Construction, Defence, and Rail & Metro.

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.