Government To Sell 26% Stake In BEML To Strategic Buyers
The government currently holds 54.03 percent stake in BEML.
The government will sell 26 percent stake in state-owned heavy machinery manufacturer BEML Ltd. via strategic sale.
The Cabinet Committee on Economic Affairs gave its in-principle approval for the strategic stake sale, BEML said in a stock exchange filing on Friday. Post this strategic sale, Government of India’s holding would fall to 28.03 percent from current 54.03 percent.
The said shareholding would be sold to the strategic buyers to be identified by the Government of India by following due procedure.BEML Stock Exchange Filing
According to BloombergQuint's calculations, the government will sell around 1.08 crore shares for a total value of Rs 1,080 crore as per the current market price.
The government had sold 38.77 percent of its stake in BEML through an initial public offering in 1997, which was further diluted to 54.03 percent in July 2007 through a follow on public offer.
The strategic sale approval is in line with the government’s plan to dilute stake in poorly performing companies, according to wire agency PTI. In September, the Cabinet had cleared strategic sale of Bharat Pumps and Compressors Ltd, while in December it had approved sale of India's first pharma company Bengal Chemicals and Pharmaceuticals Ltd as well as Hindustan Antibiotics Ltd.
BEML’s shares closed 0.5 percent lower at Rs 997 per scrip on the National Stock Exchange.