The Centre plans to sell a 5% stake in Bharat Electronics (BEL) through an offer for sale to raise about `1,300 crore. Currently, the government holds 66.79% in the defence PSU.
In the meanwhile, the department of investment and public asset management (DIPAM) has invited applications from bankers to manage the share sale. It would appoint up to three merchant bankers for the transaction.
BEL’s indigenous products contributes 86% of its turnover while the balance 14% of the revenues come from products manufactured through technology transfer from foreign partners. The face value of each BEL share is Re 1.
BEL stocks rose 4.13% to close at `107.05 on Tuesday. Based on the current market price, a 5% stake sale in the company could fetch the Centre about `1,300 crore. The government has raised `9,220 crore so far this fiscal against the disinvestment revenue target of `80,000 crore for the full year.