As per latest reports, six companies are looking to buy a 26 percent stake in state-run defence equipment maker BEML Ltd.
These companies include Tata Motors Ltd, Mahindra and Mahindra Ltd and Ashok Leyland Ltd respectively.
Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd also expressed interest for the government’s stake in BEML.
Moreover, companies like Tata Motors, Mahindra and Ashok Leyland aim to take control of BEML as part of their strategy.
The objective is to grow their defence manufacturing businesses and cut dependence on the core commercial vehicle business.
Further, the Centre has confirmed it’s decision to disinvest 26 percent of its total 54.03 percent stake in BEML Ltd. This is however a part of the government’s privatisation drive.
Currently, the government which holds 54 percent stake in BEML, invited for the stake sale in the defence equipment maker.
The department of investment and public asset initially set March 1 as the deadline for submission of interest. However, it has now extended the deadline to March 22.
Meanwhile, SBI Capital Markets Ltd is advising the government on the sale process. Also, it is set to notify the shortlisted bidders of the next stage.
BEML manufactures products such as the Prithvi missile launcher, army transportation vehicles and railway and metro coaches.
The company operates in three major business segments such as mining and construction, defence and aerospace, and rail and metro.
Moving forward, it has nine manufacturing units in Bengaluru, Kolar Gold Fields, Mysuru, Palakkad and Chikkamagaluru.
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