Govt invites preliminary bids for 26% strategic sale in defence PSU BEML

The government on Sunday invited preliminary bids for strategic sale of 26 per cent stake along with transfer of management control in defence PSU BEML.

"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," DIPAM Secretary Tuhin Kanta Pandey tweeted.

Bidders can submit their Expression of Interest (EoI) for buying the stake in BEML by March 1, as per the Preliminary Information Memorandum (PIM) issued by the Department of Investment and Public Asset Management (DIPAM).

At the current market price, a 26 per cent sale could fetch about Rs 1,000 crore to the exchequer.Shares of BEML closed at Rs 974.25, on Friday.

BEML is involved in sectors like defence, rail, power, mining and infrastructure.

The company's total revenue from operations was Rs 3,028.82 crore in fiscal 2019-20.

SBI Capital Markets has been appointed as the advisor by the Government of India (GOI) for advising and managing the proposed strategic disinvestment of BEML.

BEML has an order book of Rs 9,795 crore as on March 31, 2020.

The government has 'in-principle' decided to disinvest 26 per cent stake of BEML through strategic sale with transfer of management control. The government holds 54.03 per cent stake in the company.