BEML public offer subscribed around 9 times

MUMBAI: The follow-on public offer of Bharat Earth Movers Ltd (BEML) has been subscribed 8.83 times with good response from QIBs, foreign investors and financial investors.

The issue received bids for 4.32 crore shares for the 49 lakh equity shares on offer, latest data available on the bourses show.

The issue, which would closed at the end of working hours today and is expected to raise up to Rs 534 crore, was fully- subscribed on the first day itself.

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

The offer would also help it achieve the Rs 5,000 crore revenue target by 2013-14.

BEML, a defence PSU, had earlier said it would invest Rs 304.5 crore of the issue proceeds to upgrade 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.