BEML follow-on offer price band fixed at Rs 1020-1090

The price band of BEML's follow-on public offer has been fixed at Rs 1,020-1,090 a share.

The company is entering the capital market with its follow-on issue of 49 lakh equity shares of Rs 10 each at a price to be decided through 100 per cent book-building process. The company aims to raise close to Rs 500 crore issue.

The board of directors of the company at a meeting here today also decided to declare a final dividend of 120 per cent for 2006-07 against 100 per cent previous year. It has already paid an interim dividend of 40 per cent.

The issue opens on June 27 and closes on July 3, 2007. The issue comprises 11.77 per cent of the fully diluted post-issue paid-up equity capital of the company.

Post-issue, the government's holding in BEML would not be less than 54 per cent, the company's chairman and managing director V RS Natarajan told reporters here today.

For the year ending March 31, 2007, BEML registered a net profit of Rs 204 crore, a growth of 9.09 per cent over the previous financial year. Its turnover for the year went up 18 per cent to Rs 2,601 crore.