Bharat Earth Movers Ltds follow on public offer

Bharat Earth Movers Ltd (BEML), the Public sector Undertaking, has decided to raise funds through Follow On Public offer (FPO) and fixed the price band for its FPO between Rs.1,020 and Rs.1,090.

By K G Vasuki

Bangalore, June 27 : Bharat Earth Movers Ltd (BEML), the Public sector Undertaking, has decided to raise funds through Follow On Public offer (FPO) and fixed the price band for its FPO between Rs.1,020 and Rs.1,090.

Addressing a press conference here, the BEML Chairman and Managing Director VRS Natarajan has said that the Board has decided that a 4.9 million shares being offered through a 100 percent book-building process.

"The issue proceedings would be utilised to partially fund our infrastructure plans, including the expansion of the metro coach manufacturing facility in Bangalore and capital expenditure of Rs.900 million to upgrade the existing facilities" Natarajan said.

Of the total issue, 490,000 equity shares have been reserved for employees and a net issue of 4.41 million for the public.

About 50 percent of the net issue has been earmarked for institutional investors, including mutual funds on proportionate basis.

BEML manufactures a variety of heavy equipment, such as that used for earth moving, transportation and mining. It is Asia's second-largest manufacturer of earth moving equipment, and it controls 70 per cent of India's market in that sector.

BEML incorporated in May of 1964, and commenced operations on January 1, 1965.

ANI