BHEL drops on stake sale nod

BHEL has dropped in morning trades on news that the Cabinet Committee on Economic Affairs has approved offloading 5% paid-up equity through book-building process in the domestic market. After this the government stake will come down to 62.72%.

The government has, in the current financial year, raised Rs 1,162 crore through divestment, of a 5% stake in Power Finance Corporation in May. Initially this year, BHEL was not part of the government’s list for disinvestment.

The stock opened at Rs 1,770 and dropped sharply to a low of Rs 1,741. It is now down 1% at Rs 1,748. Around 17,000 shares have been traded on the BSE so far.