Bangalore, Apr 18 (UNI) State-owned Bharat Earth Movers Limited (BEML) will enter the capital market for a follow on public offer of 4.9 million equity shares of Rs ten each at a premium to be decided through a 100 per cent book building process.
The company had filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for the follow on issue, in which ten per cent had been reserved for eligible employees.
The issue would constitute 11.77 per cent of the fully diluted post-issue paid-up equity capital of the company. After the issue, the Government holding was expected to be around 54 per cent. The Book Running Lead Manager to the issue was ICICI Securities Limited.
The company, in a release here, said the issue proceeds would fund the expansion of the Metro Coach manufacturing facility here and capital expenditure including upgradation of current facilities.
The company also intended to use part of the proceeds to set up a five MW wind mill for captive consumption and contribution towards setting up a Research and Development Centre of Excellence for Metro coaches. The company would also earmark a part of the proceeds towards the Voluntary Retirement Scheme (VRS) for employees.
BEML, a Mini-Ratna (Category 1) company under the Defence Ministry, was ranked first among the 'Fastest Growing Construction Equipment Companies in India' (Construction World - NICMAR Survey 2005).