In January 2021, the centre invited preliminary bids for selling a 26% stake in the defense public sector unit along with the management control. It received multiple expressions of interest (EoIs) for the sale.
Following this, the BEML demerged its non-core businesses into BEML Land Assets and listed the new company on the stock market on 19 April 2023.
An official told about the financial bids for BEML’s construction and defence-related business.
“The listing of land and other non-core assets is complete. Now we will soon invite financial bids for the core assets, which are construction and defence related,” an official said.
BEML is a diversified company supplying products, services, and support to defence & aerospace, mining & construction, and rail & metro for clients within and outside India.
The government currently holds a 54.03% stake in BEML, which is a public sector undertaking under the defence ministry.
At the current market price, the sale of the government’s 26% stake in BEML will fetch around ₹1,500 crore to the exchequer. In 2016, the Union Cabinet approved the strategic disinvestment along with the transfer of management control of the company.
BEML reported a 15.5% decline in consolidated profit at ₹66.30 crore for the quarter ended December 31, 2022.
The company had posted consolidated profit of ₹78.51 crore in the corresponding quarter of previous fiscal, BEML said in a regulatory filing.
The consolidated income of the company during the third quarter dropped to ₹1,039.59 crore, over ₹1,174.05 crore in the year-ago period.
The company’s board declared an interim dividend of ₹5 per equity share for 2022-23.
BEML livmanufactures a variety of heavy equipment, such as that used for earth moving, railways, transport and mining. It is headquartered in Bangalore.
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