BEML shares zoom past 7% as government decides to disinvest in company
Shares of BEML, a Bangalore-based public sector enterprise Bharat Earth Movers Limited (BEML) jumped over 7 per cent in the early trade on Monday after the government decided to disinvest 26% equity share capital out of its shareholding of 54.03% along with management control.
“We wish to inform, the Government of India currently holds 54.03 per cent of the total equity share capital of our Company. Gol has decided to disinvest 26 per cent of the total equity share capital of our company through strategic disinvestment with the transfer of management control,” BEML said in its statement.
The government has appointed SBI Capital Markets Ltd (SBICAP) as its Transaction Advisor to advise and manage the strategic disinvestment process, it added.
The aforesaid disinvestment process is to be implemented through an open competitive bidding route.
“Disinvestment will be through a two-stage competitive bidding process,” the department said in the preliminary information memorandum issued on Sunday.
Consortium bidding has also been permitted where the lead members must have a minimum of 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.
The stock price rallied as much as 7.7 per cent to Rs 1,050.00 apiece on the BSE. At 10:15 am, the shares were trading 3.47 per cent higher at Rs 1,008.05 apiece on the BSE as compared to a 0.41 per cent gain in the benchmark Sensex.