Bharat Earth Movers Limited (BEML), the leading public sector firm dealing with construction and mining equipment and transport vehicles for the defence sector, plans to raise Rs 450-500 crore through a public issue during the second quarter of fiscal 2006-07. The company has already sent its proposal to the government and it is currently being examined by the ministries of defence and finance, said its chairman and managing director V R S Natarajan.Addressing a press conference here on Friday, he said the company will offer 50 lakh shares to the public and the issue price will be determined through the book building process. The entire money being raised will be used to fund BEML's expansion and diversification plans, he said.At present, the government holds 61 per cent of the equity in BEML, while the rest is held by the public, employees, banks and financial institutions. As a result of expanded equity, the government holding will reduce to 54-55 per cent post-issue with 2.25 crore shares. The company had made its initial public offer a decade ago. Natarajan said the board of directors has approved a capital expenditure of Rs 160 crore during 2006-07. Rs 125 crore is being sought from the Union government for setting up a research and development unit in Bangalore for complete indigenisation of metro coaches and expansion of installed capacity to cater to the upcoming Metro system in Bangalore and other cities. BEML expects to get an order for supply of 130 coaches from Bangalore Metro as and when the project materialises.The company, which gets 30 per cent of its business from the defence ministry, expects to get the same in fiscal 2006-07. It has bagged an order from the defence ministry to supply 11 vehicles of 12x12 axle for carrying Brahmos missile, he added.It also bagged an order from the defence services to supply around 1,000 Tatra trucks, trailers and recovery vehicles of different tonnage. BEML has three manufacturing facilities at Bangalore, Kolar Gold Fields (KGF) and Mysore.
