Bharat Earth files Draft Red Herring Prospectus with SEBI

Mumbai, Apr 18 (UNI) Mining and construction equipment manufacturer, Bharat Earth Movers Limited, today filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to enter the capital markets with its Follow-on public offer of equity shares.

The company, which is also engaged in the manufacture of railway, metro and defence products, proposes to offer 49,00,000 Equity Shares of Rs 10 each for cash at a premium to be decided through a 100 per cent book building process, an official statement said.

The Issue includes a reservation for eligible employees of 4,90,000 Equity Shares, under the 'Employee Reservation Portion'.

Consequently, the Net Issue to the public will be 44,10,000 Equity Shares. The Issue would constitute 11.77 per cent of the fully diluted post-issue paid-up equity capital of the company.

After the Issue, Government holding is expected to be approximately 54 per cent, and hence the company will continue to be a government Company.

The Book Running Lead Manager to the Issue is ICICI Securities Limited, the statement said.

The Issue proceeds will fund the expansion of the Metro Coach manufacturing facility at Bangalore, and capital expenditure including upgradation of current facilities. The Company also intends to use part of the proceeds to set up a 5MW Wind Mill for captive consumption and contribution towards setting up of an research and development (R&D) Centre of Excellence for Metro Coaches. The Company will also earmark some part of the proceeds towards a Voluntary Retirement Scheme (VRS) for Employees, the statement added.

The existing Equity Shares of the company are listed on the premier Bombay Stock Exchange (BSE), the National Stock Exchange (NSE) and the Bangalore Stock Exchange (BgSE).

UNI