The Hindu Business Line : BEML price band fixed at Rs 1,020-1,090

Bangalore June 25 Bharat Earth Movers Ltd's follow-on public issue opens on June 27 in a price band of Rs 1,020-1,090. This will be at a discount of around Rs 110-180 over its prevailing stock price hovering at Rs 1,200 on Monday, Mr V.R.S. Natarajan, BEML's Chairman and Managing Director, said at the company's final pre-issue roadshow in Bangalore on Monday.

The defence PSU plans to raise close to Rs 500 crore by offering 49 lakh shares of Rs 10 each. The offer closes on July 3.

New name

The 45-year-old defence PSU will change its name to Beml Ltd in a few months from now. The new name has become necessary because the company has moved beyond mere earth moving equipment and diversified into new areas, said Mr Natarajan.

The Rs 2,600-crore company wants to be known as a manufacturer of heavy equipment such as earth movers and mining equipment, metro and rail coaches; OTR tyres, contract mining; and infrastructure solutions for the defence and civil customers as well.

Q4 net up

BEML board has approved the second interim dividend of 80 per cent, taking the total to 120 per cent for the year 2006-07. It had earlier announced 40 per cent.

The company posted a net profit of Rs 93.51 crore for the quarter ended March 31, a growth of 8.6 per cent year-on-year over Rs 86.12 crore. Total income (net of excise) increased to Rs 958.48 crore (Rs 836.58 crore).

As per the audited figures for the entire fiscal ended March 31, the net profit was Rs 204.93 crore (Rs 186.93 crore); total income was Rs 2,126.92 crore (Rs 2,479.28).

Defence business accounted for Rs 753 crore or nearly 35 per cent of the turnover.

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BEML price band fixed at Rs 1,020-1,090