The government is in plans to divest over 10 per cent equity in Balmer Lawrie and Company, currently held by IBP Company. It is likely to adopt the public issue or the private placement route for the purpose. With the proposed disinvestment, the equity holding of IBP in Balmer Lawrie will come down from the present 61.8 per cent to 51.02 per cent.
The draft note for the cabinet has been approved by the Planning Commission, the Department of Public Enterprises and the finance ministry. It is pending the approval of the minister for petroleum and natural gas, V K Ramamurthy.
Balmer Lawrie became a government company in August 1972, when it became a subsidiary of IBP. The authorised capital of the firm is Rs 30 crore while the paid-up capital Rs 6.29 crore.
It is a diversified medium-sized company with operations spread throughout the country and overseas. The company is in the business of industrial packaging, grease and lubricant manufacturing, leather and oleo chemicals, marine freight containers, tea exports and travel and tour business.