The government is likely to invite financial bids for the privatisation of BEML Ltd. in the December quarter, an official said.
Earlier this month, the Union Ministry Of Corporate Affairs approved the demerger of land and non-core assets of BEML to BEML Land Assets Ltd. 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 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. The draft share purchase agreement too would be finalised by then.
The government had in January last year invited preliminary bids for selling 26% stake in BEML along with the management control.
Multiple Expressions of Interest 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% in BEML. At the current market price, sale of the government’s 26% stake in BEML will fetch around Rs 2,000 crore.
The government has so far this fiscal raised Rs 24,544 crore via divestment against a full-year budget target of Rs 65,000 crore.