BEML plans follow-on public issue

Kolkata, Nov 08 (UNI) PSU major Bharat Earth Movers Ltd (BEML) is planning to raise money through a follow-on public issue to fund its expansion.

The company has applied before the cabinet for approval, which is expected by next month.

BEML hopes to hit the market by March 2007 and mobilise around Rs 400 crore from the offering, chairman-cum-managing director V R S Natarajan told reporters here today.

BEML also plans to acquire a Brazilian company "CCC" specialising in manufacturing of rail wagons and mining equipment with Rs 100 crore investment, Mr Natarajan said.

The company has appointed two consultants to complete the acquisition.

One of the consultants would prepare the financial and legal formalities and the other the project report.

The Brazilian company is expected to start production by second half of 2007.

BEML is also forming a joint venture with an Indian and Indonesian company for contract mining.

BEML would hold 45 per cent stake in the venture.

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