“Based on requests from potential bidders, due to the restrictions imposed by several countries in light of the Covid 19 pandemic and the consequent logistical challenges faced by interested bidders,” the department of investment and public asset management (DIPAM) said in a statement Friday, giving reasons for the extension.
The government will disinvest 26 per cent equity share capital of the Bangalore-based public sector enterprise out of its shareholding of 54.03 per cent along with management control, through a two stage competitive bidding process.
DIPAM has set the minimum net worth requirement for bidders at Rs 1400 crore. Companies, limited liability partnerships (LLPs) and funds eligible to invest in India can participate in the bidding process, however government companies have been barred from participating.
Consortium bidding has also been permitted where lead member must have a minimum 51 per cent stake in the consortium. The lead member should have profit after tax in at least three years out of immediately five preceding years.
Non-core land and assets will be hived off and will not be a part of disinvestment, as per details in the preliminary information memorandum. SBI Capital Markets Limited (SBICAP) will be the transaction advisor to advise and manage the strategic disinvestment process.
The company manufactures a variety of heavy equipment, such as that used for earth moving, transport and mining. 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 1,079, on Friday, up 0.84 per cent.
The government is aggressively going ahead with privatisation of state-run companies such as Bharat Petroleum Corporation Limited, Container Corporation of India, Shipping Corporation of India and Air India.
The government had set a disinvestment target of Rs 2.1 lakh crore for the ongoing fiscal year. The target has been lowered to Rs 32,000 crore in the revised estimates issued during Union Budget FY22.
