The Centre is likely to invite financial bids for the privatisation of BEML in the December quarter, quoting an official, the PTI said.
According to the report, earlier this month, the corporate affairs ministry approved the demerger of land and non-core assets of BEML to BEML Land Assets Ltd. The official said that every shareholder of BEML will get shares in BEML Land Assets and the process of demerger would be completed by the end of September or early October.
“Once the demerger process gets over by September-end or by early October, the financial bids for strategic sale of BEML would be invited,” the official said.
Currently, the government holds 54.03 per cent in BEML, which is a defence public sector undertaking. At the current market price, sale of the government’s 26 per cent stake in BEML will fetch around Rs 2,000 crore.
The financial bids are expected in the October-December quarter and the draft share purchase agreement too would be finalised by then, the official added.
In January last year, the government invited preliminary bids for selling 26 per cent stake in BEML along with the management control.
Multiple Expressions of Interest (EoIs) were received by the government, after which the process of demerger was initiated following comments from investors. Once the demerger is complete, financial bids would be invited.
In 2016, the Union Cabinet approved the strategic disinvestment along with transfer of management control, of the company.
So far, the government has raised Rs 24,544 crore through disinvestment in the current financial year against a full year budget target of Rs 65,000 crore.
Meanwhile, the government is considering offloading nearly 51 per cent of stake in state-run IDBI Bank Ltd.
According to the report, officials said the government and the state-backed Life Insurance Corp. of India, which together own about 94 per cent of IDBI Bank’s shares, are in talks about how much of their stakes they plan to sell, the sources said. However, both the parties are expected to retain a stake in the bank after the sale. A panel of ministers will make the final call on the structure of the deal.