Industrial Automation Magazine India

Government begins the process of strategic disinvestment in BEML

Published on : Tuesday 05-01-2021

Invites initial bids from private firms for a sale of 26per cent stake along with management control.

New Delhi, January 4, 2020: As part of the mega-privatisation and disinvestment plan, the government has initiated the process of BEML disinvestment by inviting initial bids from private firms for a sale of 26% stake along with management control. BEML is public sector undertaking in the defence and engineering area. SBI Capital Markets Limited has been appointed as the transaction adviser for the proposed divestment. Although the government owns a 54% stake in BEML, it plans to give away the management control to the new buyer.

According to a statement released by the Secretary, Department of Investment and Public Asset Management, Tuhin Kanta Pandey (IAS), the sale will be done through an open competitive bidding route where interested bidders will be required to submit an expression of interest by March 1. BEML disinvestment had officially begun a year ago after government had appointed M/s CBRE South Asia Pvt Ltd and M/s JLL Property Consultants (India) Pvt Ltd as consultancy firms for monetisation of identified assets of BEML Ltd on January 10, 2020. However, the process got delayed due to the pandemic.

BEML Limited, formerly known as Bharat Earth Movers Limited, was established in May 1964 as a PSU for the manufacture of Rail Coaches & Spare Parts and Mining Equipment at its Bangalore Complex. The company has partially disinvested and presently the government owns 54 per cent of total equity and rest 46 per cent is held by Public, Financial Institutions, Foreign Institutional Investors, Banks and BEML Employees.