Govt selling its stake of BEML

New Delhi: The government of India starts the bid invitation of Bharat Earth Movers Limited (BEML), after the four years cabinet approved the disinvestment in the company.

The Center will disinvest its 26 percent stake out of the 54.03 percent stake it holds in the company, on Sunday the government invited bids for this strategic disinvestment process. 

This disinvestment will lead to a sale push of around Rs 1,000 crores according to the company's share closing price on Friday. The bidding process will be a two-stage open competitive process of disinvestment. The process of bidding will end on March 1, 2021. Interested parties will be allowed to send their queries from Monday, and will have to submit their EoIs by March 1 electronically, and a physical copy by March 16, Centre mentioned. 

Eligibility for bidders

1. Companies, limited liability partnerships and funds, eligible to invest in India, can participate in the process if their minimum net worth is Rs 1,400 crore.
2. Interested bidders will have to form a consortium, and bid for the company with the lead members owning a minimum of 51 percent in the consortium.
3. The bidders should have reported a positive profit in at least three out of five preceding years.
4. Employees of BEML are also allowed to bid for the company independently or through a consortium with a bank, venture capitalist, or a financial institution. CPSEs are not allowed to bid.
5. Given that BEML is a listed company, the acquisition of 26 percent would trigger a mandatory open offer. The investor will be required to make an offer to acquire an additional 26 percent from public shareholders once the shareholding increases to 25 percent or more.

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