BANGALORE: Shares of Bharat Earth Movers Limited (BEML) hit the roof Monday morning, after the Union Cabinet gave an ‘in-princile’ nod for the government’s strategic disinvestment of 26% equity shares in the company. The government holds a 54.03% stake in the company. BEML made this announcement after trading hours last Friday (January 6). The company added that the said shareholding would be sold to the strategic buyer(s) to be identified by the Government of India by following due procedure. Once the sale is through, the government’s stake in the public sector undertaking would come down to 28.03%.
BEML, a more than Rs 3500 crore turnover company, operates on three major business verticals, mining & construction, rail & metro and defence & aerospace.
After vaulting to Rs 1188, the stock gave up some gains and is currently trading at Rs 1133, up more than 14% from its previous closing price.
On the National Stock Exchange, the BEML counter has clocked a volume of nearly 3.6 million shares so far in the session. On BSE, more than 5.75 lakh shares have changed hands so far in the session, substantially higher than the average daily volume of 35,000 shares.
The stock, which had hit a high of Rs 1281 on 6 January 2016, touched a 52-week low of Rs 770.15 on 23 November 2016, before forcing its way up north to its current level. And it now looks well on course to sail past the Rs 1300 mark.