Suitors line up to pick up 26% stake in BEML
Even though the government is in the process of appointing merchant bankers and legal advisors for a 26% stake sale in BEML, top government sources tell ET NOW that many suitors are already lining up to pick up a strategic stake in the company.
Subsidiaries of Mitsubishi, Siemens and L&T are said to have informally approached the government to show interest in the stake sale.
"Many suitors are lining up. We have seen initial interest by 5-6 players. Some Japanese players have shown interest. Other companies with presence in defence and aerospace also what to know what will be offered as a part of the deal", a government official aware of the development told ET Now.
The Union Cabinet had approved of selling 26% government stake in BEML. The government currently owns 54.03% stake in BEML. The company in a notification to stock exchanges in the first week of January informed that the government, ministry of defence has approved a strategic sale plan.
"We are looking to complete the sale of BEML stake by the first half the the next fiscal. A cabinet nod would be required after the final structure of the BEML sale is prepared," the official said.
The Union Budget has set out a divestment target of Rs. 62,500 crores. The Narendra Modi-lead government plans to exit from 17 public sector companies which includes selling its complete stake in Hindustan Newsprint, Ferro Scrap Nigam Ltd, Project and Development India Ltd, Hindustan Prefab Ltd.
Subsidiaries of Mitsubishi, Siemens and L&T are said to have informally approached the government to show interest in the stake sale.
"Many suitors are lining up. We have seen initial interest by 5-6 players. Some Japanese players have shown interest. Other companies with presence in defence and aerospace also what to know what will be offered as a part of the deal", a government official aware of the development told ET Now.
The Union Cabinet had approved of selling 26% government stake in BEML. The government currently owns 54.03% stake in BEML. The company in a notification to stock exchanges in the first week of January informed that the government, ministry of defence has approved a strategic sale plan.
"We are looking to complete the sale of BEML stake by the first half the the next fiscal. A cabinet nod would be required after the final structure of the BEML sale is prepared," the official said.
The Union Budget has set out a divestment target of Rs. 62,500 crores. The Narendra Modi-lead government plans to exit from 17 public sector companies which includes selling its complete stake in Hindustan Newsprint, Ferro Scrap Nigam Ltd, Project and Development India Ltd, Hindustan Prefab Ltd.
