Tata Motors, Ashok Leyland Among Six Players Eyeing Stake In Govt-Owned BEML; Share Price Goes Up Over 18%

In a positive development for the Government's disinvestment programme to spur economic growth, at least six private sector companies are said to be looking to purchase a 26 per cent stake in state-run defence equipment maker BEML Ltd, reports Livemint.

The Government has invited expressions of interest (EoIs) for the sale of 26 per cent of its 54 per cent shareholding in the defence equipment maker along with the transfer of management control. The Department of Investment and Public Asset Management (DIPAM) initially set the deadline for this regard as 1 March, which was later extended to 22 March.

The news led to a sharp interest in the defence manufacturer’s share and it was trading at Rs 1394 (up by over 18 per cent) at 11:45 am.

Companies like Tata Motors, Mahindra & Mahindra and Ashok Leyland are said to be looking to seek control of BEML as part of their strategy to grow their defence manufacturing businesses and cut dependence on the core commercial vehicle business. Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd are also likely to submit EoIs.

The Government is being advised on the transaction by SBI Capital Markets Limited. Once the EoIs are submitted by the interested private sector players, SBI Capital Markets will intimate the shortlisted bidders of the next stage.