Tata Motors, Ashok Leyland and Mahindra and Mahindra are among atleast six companies looking to buy government's 26 per cent stake in state-run defence and construction equipment manufacturer BEML Ltd.
Besides, Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd are also likely to submit Expression of Interest (EoI) for acquiring stake in the company, Mint reported citing sources.
The Department of Investment and Public Asset Management had in January invited EoI to offload its 26 per cent stake in BEML. The government currently holds 54.03 per cent stake in BEML. SBI Capital Markets has been appointed as the transaction advisor for managing the disinvestment process on behalf of the government.
With the stake sale, management control of BEML will also be transferred to the successful bidder. The deadline for submission of EoI was March 1, which was later extended to March 22.
"For auto companies, BEML is a major competitor in the tenders and would eventually win a lot of them since it's state-controlled. Hence, it makes sense for these companies to acquire the heavy-vehicle manufacturing company," an executive from one of the companies mentioned above was cited as saying.
A spokesperson of Megha Engineering also confirmed to the publication its interest in buying stake in BEML.
BEML operates under three major business verticals -- defence and aerospace, mining and construction, and rail and metro. Its revenue stood at Rs 3,028.82 crore in financial year 2019-20, while its net profit was at Rs 68.38 crore.
The government has set a disinvestment target of Rs 1.75 lakh crore for FY22.