BEML surges 10%, hits 52-week high on report govt plans divestment

Shares of BEML surged 10 per cent to hit a fresh 52-week high of Rs 1,108 on the BSE on Wednesday on report that the government has started the divestment process of the state-owned commercial vehicles' company.

According to a report by CNBC-Awaaz, the government could soon invite Expression of Interest (EoI) by late November or early December to reduce its stake by nearly 26 per cent in the company.

"While the government would reduce stake from the current 54.03 per cent, it would continue to retain control over management," the report said. It further added that Centre would not need Cabinet approval for the sale. 

BEML in September said that the government has intimated the Expression of Interest (EoI) / Preliminary Information Memorandum (PIM) document in respect of disinvestment of shareholding of BEML in Vignyan Industries (VIL). BEML holds 96.56 per cent stake in VIL.

Meanwhile, earlier this month, BEML had bagged further orders worth Rs 729 crore from Delhi Metro Rail Corporation. The order is for ‘RS15’ design, manufacture, supply, testing and commissioning of 80 broad-gauge intermediate cars compatible with the existing ‘RS1’ type trains for conversion of six-car train set to eight-car train.

At 10:14 am, BEML was trading 7 per cent higher at Rs 1,079 on the BSE, as compared to a 0.34 per cent rise in the S&P BSE Sensex. A combined 1.5 million equity shares have changed hands on the counter on the NSE and BSE so far.