The media had reports that Bharat Heavy Electricals Ltd may acquire Bharat Pumps and Compressors Limited.
The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company.
Bharat Heavy Electricals Ltd has vide its letter inter-alia stated,"In the revival process of Bharat Pumps & Compressors Limited (BPCL), Allahabad, based on the recommendations of BRPSE (Board for Reconstruction of Public Sector Enterprises), Committee of Secretaries and Group of Ministers, the Cabinet has approved a proposal in which BHEL has been asked to provide Management support to BPCL through the reconstruction of the board of BPCL by providing Chairman and one part-time Director from BHEL and selection of Managing Director by BHEL.
In addition, BHEL is to provide an amount of Rs. 20 crores as subordinate debt to BPCL for revival of the Company with an option to convert the above amount into equity at an appropriate time at the sole discretion of BHEL.
Board of BPCL has since been re-constituted on the above lines. Hence it may be seen that BHEL is only to provide Management support to Bharat Pumps & Compressors Limited." -- www.nseindia.com
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