BEML public offer subscribed 3 times

MUMBAI: The follow-on public offer of BEML Ltd, a defence PSU, has been subscribed over three times on its third day of issue.

The issue received bids for 1.51 crore shares for its offer of 49 lakh equity shares, latest data available on the bourses show.

The issue, which would close on July 3, is expected to raise up to Rs 534 crore and had got fully subscribed on the first day of the issue.

The price band of the offer has been fixed between Rs 1,020-1,090. The proceeds of FPO would be used to part-finance the company's Rs 900 crore capex programme over a period of three years.

The investment in the company was needed to fuel its growth plan and would also help it to achieve the Rs 5,000 crore revenue target by 2013-14.

BEML had earlier said it would invest Rs 304.5 crore of the issue proceeds for upgradation of its Metro coach manufacturing plant in Bangalore, besides setting up a 5 MW wind mill for captive consumption at Rs 27 crore.

It plans to invest Rs 9 crore toward development of a research centre for metro coaches and a voluntary retirement scheme for employees.