The divestment process of Balmer Lawrie & Co Ltd’s logistics arm is likely to be expedited. It is one of the 8 subsidiaries of the state-run company. The government intends to start selling the subsidiaries one-by-one. Zee Business’ Brajesh Kumar Mishra brings this exclusive report.
In December, SBI Capital Markets presented a report on this company. The government is likely to appoint a transaction advisor soon.
The government wants to exit from all the businesses which do not have any strategic importance and it is not important for the government to run those businesses.
The government plans to start divestment of its logistics subsidiary first.
Zee Business Managing Editor called it an important step towards the divestment of Balmer Lawrie. He also explained how the process of divestment will happen.
The logistics business will first get separated from other businesses and then the divestment will follow for all the 8 subsidiaries.
Department of Investment and Public Asset Management (DIPAM) has a special focus on the divestment of this company.
Balmer Lawrie is a Miniratna – I Public Sector Enterprise under the Ministry of Petroleum and Natural Gas, Government of India, with a turnover of Rs. 1593 crores and a profit of Rs 157 crores according to the company website.
The company claims to be a market leader in Steel Barrels, Industrial Greases & Specialty Lubricants, Corporate Travel and Logistics Services.
The shares of Balmer Lawrie today ended at Rs 127.30 on the NSE, up almost 4 per cent from the Thursday closing price.
Source : Zee
