Balmer Lawrie Investments Ltd is a government company under section 617 of the Companies Act, 1956. The President of India is the major shareholder holding to the tune of 59.67% of its total paid up equity capital. Though being a Non-banking Financial Institution under the Reserve Bank of India Act, 1934, it does not carry any non-banking financial activity except holding of equity shares of its subsidiary Balmer Lawrie & Co. Ltd., transferred from IBP Co. Ltd. This company was incorporated on September 20, 2001 under the Companies Act, 1956 and presently its equity shares are listed with ‘The Calcutta Stock Exchange Association Ltd.’ and ‘Bombay Stock Exchange Ltd’.
The government of India, in view of its planned deregulation of the oil and gobalisation of the economy, decided to disinvest 33.58% of its total equity holding of 59.58% in IBP Co. Limited to a strategic partner with management control. In consequence to such disinvestment, the shareholding of IBP Co. Limited in its erstwhile subsidiary, Balmer Lawrie & Co. Limited, was decided to be de-merged in favour of Balmer Lawrie Investments Limited, which was incorporated on 20 September 2001 under the Companies Act, 1956, in which the President of India holds 59.67% of its total paid up equity capital.
Balmer Lawrie Investments is also a non-banking financial company as defined under section 45-I(f) of the Reserve Bank of India Act, 1934. On the basis of application given by the company the RBI in exercise of their power conferred under section 45-NC of the Reserve Bank of India Act, 1934, has exempted the company to comply with the formalities of registration and minimum net owned funds subject to the Compliance of the following provisions:
The company does not carry on any business except to hold 1,00,64,700 equity shares of Rs 10 each of Balmer Lawrie & Co. Ltd.Balmer Lawrie Investments Limited is presently under the administrative control of the Ministry of Petroleum & Natural Gas, Government of India.