The Centre has decided to disinvest 26 percent of its 54.03 percent stake in BEML Ltd.
BEML | The government announced schedule – March 1-22 – for submission of Expression of Interest (Eol) from the bidders for the proposed strategic disinvestment of 26 percent stake in BEML along with transfer of management control.
Tata Motors, Mahindra and Mahindra and Ashok Leyland are reportedly among the companies looking to acquire a 26 percent stake in the defence equipment maker BEML.
Bharat Forge and Megha Engineering and Infrastructure may also submit the expressions of interest for the Centre’s stake in BEML, LiveMint reported.
“For auto companies, BEML is a major competitor in the tenders and would eventually win a lot of them since it is state-controlled. Hence, it makes sense for these companies to acquire the heavy-vehicle manufacturing company,” the report quoted a senior executive from one of the firms cited above as saying.
The Centre in January 2021 invited expressions of interest for a stake sale in the defence equipment maker along with the transfer of management control.
The Centre has decided to disinvest 26 percent of its total 54.03 percent stake in BEML Ltd as part of the government’s privatisation drive.
According to a press release issued by BMEL, the stake sale would be done through an open competitive bidding route. Interested bidders were to submit an expression of interest (EoI) by March 1. The deadline has now been extended to March 22.
After EoIs, SBI Capital Markets will intimate the shortlisted bidders of the next stage, the report said.
While spokespeople of Mahindra and Mahindra Ltd and Ashok Leyland Ltd declined to comment, a spokesperson for Megha Engineering confirmed the company’s interest in BEML, the report said.
BEML (formerly known as Bharat Earth Movers) is a Miniratna Category-1 Public Sector Undertaking, under the administrative control of the Ministry of Defence. The company was incorporated on May 11, 1964. It operates under three major business verticals—mining & construction, defence and rail and metro.