Home / Markets / Commodities /  BEML's demerged entity's listing likely in one month

The demerged non-core businesses entity, BEM Land Assets Ltd, of BEML is expected to be listed in a month in a step forward to the divestment of the company as the government seeks strategic divestment of 26% post BEML demerger process of non-core assets.

"Listing of demerged land company will be in a month's time. The valuation process is on. After listing, disinvestment process will be started," BEML chairman and managing director Amit Banerjee said whilewas speaking on the sidelines of CII-organized Global Mining Summit 2022. He told news agency PTI that the main assets of the demerged entity will be some total 550 acre of prime land in Bangalore and Mysore.

The existing BEML shareholders have been given shares in the new demerged entity in a 1:1 ratio. BEML shares started trading ex-demerger on September 8, 2022, a day ahead of its record date which was fixed on September 9 to determine the eligibility of shareholders for considering 1:1 issue of shares by BEML Land Assets Limited as per Scheme of Arrangement for demerger as approved by the MCA.

BEML demerged its land assets business from the core business to specify the real value of its core business and fixed assets separately, clearing its way for privatisation. 

The government is likely to invite financial bids for the privatisation of BEML in the December quarter, as per a PTI report. The financial bids are expected in the October-December quarter and the draft share purchase agreement too is expected to be finalised by then.

In January last year, the government invited preliminary bids for selling 26 per cent stake in BEML along with the management control. Multiple Expressions of Interest (EoIs) were received by the government, after which the process of demerger was initiated following comments from investors. Once the demerger is complete, financial bids would be invited.

BEML, formerly Bharat Earth Movers Limited, is a Defence PSU Company and is headquartered in Bengaluru, India. It manufactures a variety of heavy equipment, such as that used for earth moving, transport and mining. Shares of BEML are down about 9% in 2022 (year-to-date or YTD) so far.

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