Disinvestment: BEML demerged entity to be listed on bourses within 30 days

NEW DELHI: As part of the disinvestment exercise of state-owned mining & construction, defence and rail/metro manufacturing company BEML, the demerged non-core businesses entity – BEM Land Assets Ltd – would be listed within 30 days of the demerger.

“The demerger has already happened and the demerged entity would be listed within 30 days of the demerger. The listing would allow the market to price the demerged entity,” a finance ministry official told TNIE. BEML has currently valued at a market cap of Rs 63,600 crore.

Shares in the new demerged entity have been allocated to the existing shareholders of the BEML in 1:1 ratio, which means for every share of BEML held by a shareholder, she received one share of BEML Land Asset. The board of directors of BEML Land Assets Limited on September 16, 2022, allotted 416,44,500 equity shares of Rs 10  each to the shareholders of BEML Limited.

An exchange filing by BEML on Monday clarified that for determining the post-demerger cost of acquisition of BEML Land Assets, the pre-demerger acquisition cost of the same would be apportioned at 0.46 per cent of the current BEML share price.

BEML Land Asset is an unlisted company, which was incorporated on July 15, 2021, and BEML holds a 100 per cent stake in the company. The process (of demerger and listing of the demerged entity) is likely to be over by October this year after which the government will invite expressions of interest for 26 per cent of the government’s stake in BEML. The government currently holds a 54 per cent stake in BEML. The demerged entity would be excluded from the strategic disinvestment process.

The government is also undertaking a similar exercise in the case of the Shipping Corporation of India, where the non-core business will be hived off before divesting in the company. The board of SCI has approved the demerger of the non-core assets of SCI into the Shipping Corporation of India Land and Assets Ltd (SCILAL). The company will own Shipping House, Mumbai and MTI (Maritime Training Institute), Powai.