BEML, the state-run public sector undertaking under the ministry of defence, informed stock exchanges on Friday that the government has decided to offload 26 percent stake in the company, bringing the shareholding down to 28 percent.
The Indian government currently holds 54.03 percent in the Bengaluru-based company that makes metro coaches, mining and construction equipment and defence products (Tatra vehicles used by Indian Army).
"We hereby inform that the government of India, ministry of defence, has communicated 'in-principle' of the Cabinet Committee on Economic Affairs (CCEA) of the government of India for strategic disinvestment of 26 percent equity shares in BEML Limited...," the company said in a regulatory filing to the BSE on Friday.
The BEML stock closed at Rs 993 on Friday on the BSE, down 0.62 percent from its previous close. The stake sale is expected to realise about Rs 1,000 crore for the government. The BSE Sensex closed 119 points lower at 26,759.
For the financial year 2015-16, the company's sales stood at Rs 3,426 crore while the order book position as of November 30 2016 was Rs 7,261 crore.
Mutual Funds hold 18.64 percent while retail shareholding is about 10 percent in BEML.
The disinvestment proceeds for the current fiscal stood at Rs 23,528 crore as against the target of Rs 56,500 crore comprising strategic stake sale of Rs 20,500 crore and Rs 36,000 crore disinvestment in central public sector enterprises (CPSEs).
"During the current financial year 2016-17, the Government has so far realized Rs.23528.73 crore, which include Rs.21,432.38 crore through minority stake sale in 14 CPSEs and Rs. 2096.35 crore through strategic disinvestment. The total realization of Rs. 21,432.38 crore, by end-November 2016 through CPSEs' disinvestment receipts, constitutes around 59.53 per cent of the Budgeted Target of Rs. 36,000 crore (CPSEs' disinvestment)," the finance ministry said in an update on Tuesday (January 3 2017).