After receiving cabinet’s clearance of a follow-on public offer, BEML is looking to file the red herring prospectus with SEBI this month. “The company was in the process of filing the red herring prospectus (RHP) with SEBI this month. “We intend to hit the market in the first half of June this year," said Natarajan, BEML chairman and managing director.
According to Natarajan, Rs 440-crore public issue would be made entirely through the book-building route. After the follow-on public offer, government holding in BEML would be 55% and the balance would be held by public and financial institutions.
“While part of the public issue would go towards building infrastructure for manufacturing of metro coaches at Bangalore, Rs 90 crore the company had been earmarked for offering VRS to its employees. With the VRS, the company planned to trim down the workforce by 1000. The present strength of the workforce is 12,500,” he said.
A capital expenditure of Rs 25 crore had also been assigned in order to set up a five MW windmill power plant in Karnataka. BEML is also planning of buying out a Brazilian company, CCC, which is engaged in the mining equipment manufacturing sector. “The company was waiting for the due diligence and viability reports which would be submitted by the two appointed international consultants,” told the BEML chief.
“BEML and state owned CIL had entered into an agreement with J&K and Apollo Tyres for manufacturing tyres for dumpers,” said Natarajan. In the Rs 300 crore venture, CIL would invest Rs 200 crore, while BEML would chip in Rs 100 crore. BEML had also entered into a three-way venture to enter contract mining, he added.