Bangalore: Bharat Earth Movers Ltd (BEML) on 25 June announced a price band of Rs1,020-1,090 for its follow-on public issue to mop up upto Rs534 crore, to fund expansion and diversification plans.
The price band has been fixed at a discount to the scrip’s market price of Rs1,144 at 3pm on 25 June on the National Stock Exchange.
BEML chairman and managing director V R S Natarajan said the price-band was “reasonably kept” keeping in mind the interests of retail investors.
BEML’s follow-on public offer of 4.9 million shares opens on 27 June and would constitute the company’s 11.77% of the fully diluted post-issue paid-up equity capital.
The defence public sector undertaking posted 8.58% increase in net profit at Rs93.51 crore for the fourth quarter ended 31 March, against Rs86.12 crore for the same period last year.
The total income (net of excise) rose 14.57% to Rs958.48 crore for the quarter from Rs836.58 crore for the corresponding period a year ago.
For the year ended 31 March, the company recorded a net profit of Rs204.93 crore as compared to Rs186.93 crore in the previous year and the total Income rose to Rs2,479.28 crore from Rs2,126.92 crore.
“The Board approved a higher dividend of 120% for 2006-07 compared to 100% last year,” Natarajan told reporters.
Having already announced an interim dividend of 40%, shareholders would now get an additional 80%.
“We are targeting a sales turnover of Rs3,000 crore in 2007-08,“ Natarajan said.
With higher growth rate, the company is likely to achieve its 2013-14 target of Rs5,000 crore sales turnover by 2010-11 or 2011-12 itself, he said.
Natarajan said BEML plans to set up global warehouse in Malaysia and an outsourcing office in China. It has already opened an office in Brazil, where it plans to acquire an assembly plant within a year for about Rs100 crore.
The company currently has orders valued at Rs1,750 crore to execute, he said adding, it is confident of bagging orders worth Rs2,000 crore by the end of the current fiscal.