Government set to sell 36 percent stake in these two companies, to get Rs 1300 crore
The government invited preliminary bids for the strategic sale of a 26 percent stake in the defense sector government company BEML along with transfer of management control. The sale of 26 percent stake at the current market price can fetch the government exchequer around Rs 1,000 crore. In addition, the government is planning to sell a 10 percent stake in National Chemical and Fertilizers Limited (RCFL) and has invited bids from merchant bankers and law firms to manage the share sale process. The government exchequer will get around Rs 300 crore from the sale of 10 percent stake at the current market price. In this way, the government can get a total of Rs 1300 crore.
Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (Dipam) tweeted that, ‘Government has issued a memorandum for the disinvestment of 26% equity share capital of BEML Limited with transfer of management control’. According to the Preliminary Information Memorandum (PIM) issued by the Department of Investment and Public Asset Management (Dipam), bidders can submit EOI by March 1 to buy a stake in BEML.
BEML works in areas such as defense, rail, power, mining and infrastructure. The company’s total revenue from operations was Rs 3,028.82 crore in FY 2019-20.
Plans to sell 10% stake in National Chemical
The Department of Investment and Public Asset Management (Dipam) said in a notice that merchant bankers and legal consultants interested in it would have to submit bids by 28 January and 29 January respectively.
The government holds a 75 percent stake in RCFL and plans to divest 10 percent through its sale offering (OFS). The merchant banker must advise the government about the timing and modalities of the sale offering. Also, better returns have to be ensured. Also, wherever necessary, help will have to be obtained from regulatory agencies for clearances and exemptions. The government will appoint two merchant bankers to manage the share sale process.
