The Central government has invited expressions of interest (EoI) for the strategic sale of 26 per cent stake in Bharat Earth-Movers Ltd (BEML).
BEML is a 'Miniratna' Category-1 Public Sector Undertaking, under the administrative control of Ministry of Defence. The government currently holds 54.03 per cent stake in it.
"Govt has issued the PIM/EOI for disinvestment of 26 per cent equity share capital of BEML Ltd along with transfer of management control. Disinvestment will be through a two stage competitive bidding process," said a tweet by the Twitter handle of the Secretary, Department of Investment and Public Asset Management.
The Centre appointed SBI Capital Markets Ltd (SBICAP) as its transaction advisor to advise and manage the strategic disinvestment process, BEML said in a regulatory filing.
As per the Preliminary Information Memorandum (PIM), non-operational or surplus land assets will be hived-off and excluded it from the process of strategic disinvestment.
Accordingly, these assets will not form a part of the transaction. If the process of hive-off is not completed before the completion of the strategic disinvestment process, then a suitable mechanism shall be formulated to ensure that the non-operational surplus land does not form part of the total assets of the company post disinvestment.
Companies, LLPs and funds eligible to invest in India can participate in the disinvestment process.
Regarding consortiums bidding for the PSU, each consortium is required to declare one 'lead member', who shall hold at least 51 per cent equity share capital of the SPV promoted or to be promoted by the members of the consortium for acquiring the GOI stake being divested in BEML.
The minimum net worth of a company or a consortium required to submit EoIs is Rs 1,400 crore.
The filing said that the disinvestment process is to be implemented through open competitive bidding route.
Interested bidders who meet the requirements as per the preliminary information memorandum may submit their EOIs on or before 5 p.m. of March 1, 2021.
Incorporated on May 11, 1964, BEML operates under three major business verticals -- mining and construction, defence, and rail and Metro.