BEML receives in principle approval from government for stake sale

Government owned engineering and manufacturing behemoth, BEML earlier called Bharat Earth Movers Limited in a late exchange filing on BSE informed of receiving in principal approval from Government of India for stake sale.

Company has received 'in principle' approval from the Cabinet Committee on Economic Affairs (CCEA) of the Government of India, for strategic disinvestment of 26 per cent equity shares in BEML out of Government of India's total shareholding of 54.03 per cent.

The said shareholding would be sold to the strategic buyers to be identified by the Government of India by following due procedures.

The Modi government has been trying to trim down its shareholding in several of the PSUs, inclusive of the good ones along with the ones which have been bleeding since quite a long time, and have eaten into government coffers.

The government’s disinvestment program is mainly about revenue generation in order to meet its various other developmental agendas, and at the same time is about giving autonomy to respective state firms.

Government has budgeted to make Rs 56,500 crore from disinvestment, including Rs 20,500 crore from strategic sales, through March 2017. The cabinet has already given in principle approval for divestment of several companies.

Stocks of BEML are likely to hog the limelight on Monday, January 9.