Download Unicorn Signals App

Powered By EquityPandit

Centre to Fast-Track Divestment of Bharat Earth Movers and Shipping Corp

Picture Source: Internet

In the coming months, the central government may seek to strategically disinvestment of Bharat Earth Movers Limited (BEML) and the Expressions of Interest (EoI) from the Shipping Corporation of India (SCI) as it looks to expedite the non-strategic privatisation of state-owned enterprises according to the Economic Times.

“The spin-off of the land and non-core assets of the two companies has shelved the share sale plan, which is expected to be completed in October this year,” the report said.

The report also said the government was seeking to fast-track secondary market offers from other companies, including National Fertilizers Ltd (NFL) and Rashtriya Chemicals & Fertilizers Ltd (RCF).

“Not only is this a strategic divestment, but the government is also looking to unlock value by selling stakes in the secondary market,” ET quoted an official with knowledge of the details.

On the government’s side, it was announced on August 29 that a tender for the privatisation of BEML could start in the December quarter.

Earlier this month, the Ministry of Corporate Affairs approved the spin-off of BEML’s land and non-core assets to BEML Land Assets Ltd.

Each shareholder of BEML will receive a share in BEML Land Assets, and the spin-off process will be completed by the end of September or early October, the person in charge said.

The official said that the government is also evaluating all potential candidates and will decide based on market conditions, adding that expressions of interest to spin off IDBI Bank will also be invited soon.

The report added that the centre expects to complete the spin-off of BEML next month. The company’s board of directors has fixed September 9 as the registration date for the status of eligible shareholders for the 1:1 issue of shares by BEML Land Assets Ltd.

BEML’s net sales in June 2022 stood at Rs 669.18 crore, up 48.38% from Rs 451 crore in June 2021. SCI’s net sales stood at Rs 1,464.94 crore in June 2022, up 42.53% from Rs 1,027.83 crore in June 2021.

In the Union Budget 2021-2022 presented by Finance Minister Nirmala Sitharaman, the divestment plan includes the privatisation of SCI.

Get Daily Prediction & Stocks Tips On Your Mobile