The Hindu Business Line : BEML's Rs 500-cr public issue likely by Sept

The proposal is before the Union Government, Mr V.R.S. Natarajan, Chairman and Managing Director, said, adding that the number of shares to be issued had been brought down to 50 lakh from the proposed 72 lakh in view of the growth in the scrip value.

The BEML scrip, Mr Natarajan said, had grown 340 per cent since February 2005; it currently hovers around Rs 1,600. The issue will have ICICI Bank as the fund manager and will be through book building.

The plan approved by shareholders in July last proposes to reserve 10 per cent of the issue for existing shareholders and another 10 per cent for employees.

Govt stake

The Union Government holds 61 per cent equity in the company and FIsand the public hold the rest. Post-issue, the Government's 2.25 crore shares would remain undiluted though the percentage would come down to around 55 per cent, Mr Natarajan said.

BEML plans a capital expenditure of Rs 160 crore for the current year, including towards modernisation of its metro coaches facility in Bangalore.

A VRS is being offered this year also for about 300 employees. BEML has a total of 11,600 employees.

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