Govt May Soon Invite Bids For Selling 26% Stake In Defence PSU BEML, Shares Slump

The government is expected to soon invite financial bids for strategic sale of defence PSU BEML after its non-core business got listed on the bourses last month, according to a PTI report. The stock of BEML witnessed a decline of 1.33% on BSE to end at 1370.45 apiece. The mid cap PSU company has a market capitalisation of Rs 5,707.17 crore. Meanwhile, shares of BEML witnessed a surge of 12% in last 1-week, 13% in last 2-weeks, and 7% in last 1-month. In last 6-months, BEML shares declined
over 11%.

Stock Performance of BEML: The stock of BEML declined 17% from 52-week high price of Rs 1659.00 per share. The 52-week low price of BEML is Rs 922.74 per share.

The government is planning to sell 26% of its stake along with management control in BEML. According to report, government held a 54.03% stake in the defence PSU as of December 31, 2022.

In January 2021, the government invited preliminary bids for selling 26 per cent stake in BEML along with the management control. It received multiple expressions of interest (EoIs) for the sale. Following that, in October last year, BEML demerged its non-core businesses into BEML Land Assets and listed the new company on the bourses on April 19, 2023, stated the PTI report.

"The listing of land and other non-core assets is complete. Now we will soon invite financial bids for the core assets, which is construction and defence related," an official told PTI.

About BEML: BEML is a diversified company supplying product, services and support to defence & aerospace, mining & construction, and rail & metro for clients within and outside India. BEML is a public sector undertaking under the defence ministry. At the current market price, sale of the government's 26 per cent stake in BEML will fetch around Rs 1,500 crore to the exchequer. In 2016, the Union Cabinet had approved the strategic disinvestment along with transfer of management control, of the company.