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Centre to fast-track divestment of Bharat Earth Movers and Shipping Corp: Report

The report also said that the government is looking to fast-track secondary market offers of others, including National Fertilizers Ltd(NFL) and Rashtriya Chemicals & Fertilizers Ltd (RCF).

August 30, 2022 / 08:58 AM IST
Representative Image (Shutterstock)

Representative Image (Shutterstock)

The central government is likely to invite expressions of interest (EoIs) for strategic disinvestment of Bharat Earth Movers Limited (BEML) and Shipping Corporation of India (SCI) over the next few months, as it looks to speed up the privatisation of non-strategic state-run companies, reported Economic Times.

"The demerger of land and non-core assets of both companies, which has held up the stake-sale plans, is expected to be completed by October this year," the report said.

The report also said that the government is looking to fast-track secondary market offers of others, including National Fertilizers Ltd(NFL) and Rashtriya Chemicals & Fertilizers Ltd (RCF).

"It is not only strategic divestment, the government is also looking to unlock value through stake sale in the secondary market," cited ET quoting an official aware of the details.

The government on August 29 announced that it is likely to start inviting financial bids for the privatisation of BEML in the December quarter.

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Earlier this month, the corporate affairs ministry approved the demerger of land and non-core assets of BEML to BEML Land Assets Ltd.

The official said that every shareholder of BEML will get shares in BEML Land Assets and the process of demerger would be completed by the end of September or early October.

The government is also evaluating all prospective candidates and a decision will be taken based on market conditions, the official said, adding that EoIs for the IDBI Bank disinvestment will also be invited soon.

The Centre expects to complete BEML's demerger next month, the report added. The company's board has fixed September 9 as the record date for determining the eligible shareholders for a 1:1 issue of shares of BEML Land Assets Ltd.

"Once the process is completed, we will come up with the EoI by November," the official told ET.

BEML's net sales were Rs 669.18 crore in June 2022 - up 48.38 percent from Rs. 451.00 crore in June 2021. SCI's net sales were Rs 1,464.94 crore in June 2022 - up 42.53 percent from Rs. 1,027.83 crore in June 2021.

In the Union Budget 2021-2022, presented by Finance Minister Nirmala Sitharaman,  the divestment programme included privatisation of SCI.
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first published: Aug 30, 2022 08:58 am
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