The Hindu Business Line : BEML follow-on offer opens on June 27

NEW OFFER: Mr V.R.S. Natarajan (right), Chairman & MD, Bharat Earth Movers Ltd, and Mr V. Mohan, Director, at a press conference in Mumbai on Wednesday. — Paul Noronha

Mumbai June 20 The Bangalore-based Bharat Earth Movers Ltd (BEML) is entering the capital market with a follow-on public offer.

The company intends to sell about 49 lakh new shares of Rs 10 each to fund the expansion of the metro coach manufacturing facility at Bangalore, set up a 5 MW windmill for captive consumption and for other corporate purposes.

The company will raise about Rs 450 crore at a price band that will be decided one day prior to the issue opening date, according to a release.

The issue would constitute 11.77 per cent of the fully diluted post-issue paid-up equity capital of the company.

The issue opens for subscription on June 27 and closes on July 3.

At least 50 per cent of the net issue to the public shall be allotted on a proportionate basis to qualified institutional buyers, of which five per cent will be earmarked for to mutual funds.

Further, 15 per cent of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders, while 35 per cent of the net issue to the public shall be for allocation on a proportionate basis to retail bidders.

"We have targeted revenues of Rs 5,000 crore by 2013-14 from Rs 2,600 crore last fiscal," said Mr V.R.S. Natarajan, Chairman and Managing Director.

BEML will change its name to BEML Ltd by September 2007, he added.

ICICI Securities Primary Dealership Ltd is the book running lead manager to the issue.

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