BEML had last month fixed the record date for determining the eligibility of shareholders to consider 1:1 issue of shares by BEML Land Assets Ltd for demerger as per the plan approved by MCA, Friday, September 9th, and the stock will start rolling out. Trading ex-dimerger, one day before the record date i.e. from Thursday, 8th September, 2022.
BEML Land Assets, a wholly owned subsidiary of BEML, was incorporated in July 2021 for demerger of identified surplus and non-core assets as a part of strategic disinvestment of BEML initiated by the government.
BEML Clearing its way for privatization, it is separating its land property business from its core business to specify the true value of its core business and fixed assets separately.
The company had postponed the board meeting to fix the record date from August 18 to August 24, 2022. “We refer to our communication regarding the Board meeting of BEML Ltd. scheduled on Thursday, 18.08.2022, inter alia, for demerger of shares by BEML Land Assets Ltd. as per the scheme of arrangement for demerger approved by the Hon’ble MCA. The record date for grabbing the list of eligible shareholders for consideration of 1:1 issue has been postponed to Wednesday, 24.08.2022. Due to administrative reasons,” the company had informed in an exchange filing.
BEML shares have gained over 36 per cent in a span of one year. The stock has risen more than 12% so far in 2022 (year-to-date or YTD). BEML, a Defense PSU Company, is a leading Defence, Mining & Construction and Rail Coach Manufacturer in India.
According to a PTI report, the government may invite financial bids for the privatization of BEML in the December quarter. The financial bids are expected to come in the October-December quarter and the draft share purchase agreement is also expected to be finalized by then.
In January last year, the government had invited preliminary bids to sell 26 per cent stake in BEML with management control. The government received multiple expressions of interest (EoIs), following which the process of demerger was initiated following the comments of investors. Financial bids will be invited after the completion of the demerger.
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