The Indian Government is most likely to soon invite financial bids for strategic sale of Defence Public Sector Unit (DPSU) BEML after its non-core business got listed on the bourses last month.
Earlier, in January 2021, the Government invited preliminary bids for selling 26 percent stake in BEML along with the management control. It received multiple expressions of interest (EoIs) for the sale.
Following that, in October last year, BEML demerged its non-core businesses into BEML Land Assets and listed the new company on the bourses on April 19, 2023.
As of now, it has been reported that the listing of land and other non-core assets is complete. Now it will soon invite financial bids for the core assets, which is construction and defence related.
The Government currently holds 54.03 per cent in BEML, which is a defence public sector undertaking. At the current market price, the sale of the Government’s 26 percent stake in BEML is expected to fetch around Rs 1,500 Crores.
In 2016, the Union Cabinet had approved the strategic disinvestment along with transfer of management control, of the company.
Notably, in 2019 the Cabinet had approved a new process of strategic disinvestment with a view to expediting privatisation of select PSUs.
This was done with a view to streamlining and speeding up the process, reducing the role of administrative ministries which often used to place hurdles in the path of major stake sales
About BEML
BEML is a diversified company supplying product, services and support to defence & aerospace, mining & construction, and rail & metro for clients within and outside India.
The company reported a 15.5% decline in consolidated profit at ₹66.30 crore for the quarter ended December 31, 2022.
