BEML public issue opens for subscription

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BEML public issue opens for subscription

Bharat Earth Movers, multi-locational and multi-product manufacturer of mining and construction equipment, is open for subscription with its FPO of 49,00,000 equity shares of Rs 10 each.

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Bharat Earth Movers , BEML, multi-locational and multi-product manufacturer of mining and construction equipment, is open for subscription with its follow on public offer, FPO of 49,00,000 equity shares of Rs 10 each through a 100% book-building process, including a reservation for eligible employees of 4,90,000 equity shares. The issue closes for subscription on July 3, 2007.

The price band is between Rs 1020 and Rs 1090 per share. The issue includes a reservation for eligible employees of 4,90,000 equity shares and a net issue to the public of 44,10,000 equity shares. The issue would constitute 11.77% of the fully diluted post-issue paid-up equity capital of the company. 
 
The government currently holds 61.23% in BEML, mutual funds hold 13.89%, financial institutions/banks hold 7.26%, foreign institutional investors hold 7.8%, resident individuals hold 6.11% and corporate bodies hold 2.6%. Post issue, the government' holding in BEML will not be less than 54%.
 
The book running lead manager to the Issue is ICICI Securities Primary Dealership Limited. The equity shares offered through this follow-on public offer, as specified in the RHP, are proposed to be listed on the BSE, NSE and the BgSE.

The issue proceeds will fund the building infrastructure expansion of the metro coach manufacturing facility at Bangalore and other capital expenditure including the upgradation of current facilities. The company also intends to use part of the proceeds to set up a 5MW Wind Mill for captive consumption and an R&D Centre of Excellence for Metro Coaches. The company will also earmark some part of the proceeds towards a voluntary retirement scheme for Employees.

Bharat Earth Movers is a Public Sector Undertaking (PSU) Mini-Ratna (Category 1) Company under the Ministry of Defence. BEML primarily deals in three product segments comprising Mining and Construction equipments, Defence products and Railway & Metro products through which it caters to vital applications in diverse sectors of the economy such as mining, steel, cement, power, irrigation, construction, road building, defence, railway and Metro transit system.