BHEL posts biggest intra-day rally in 10 yrs on govt stake sale plan report

Shares of Bharat Heavy Electricals (BHEL) surged 27 per cent to Rs 56.45 on the National Stock Exchange (NSE) in the intra-day deals on Friday amid reports the government may look to reduce stake in the company..

The stock recorded its sharpest intra-day rally in more than a decade. Earlier, on May 18, 2009, it zoomed 29 per cent in the intra-day deal on the BSE.

According to business chnanel CNBC Awaaz, the government may consider bringing down its stake in state-owned BHEL and National Mineral Development Corporation (NMDC).

The stake in BHEL may be pared in tranches to 26 per cent from 63.17 per cent now. An inter-ministerial group is expected to meet soon to discuss the stake sale, added report quoting sources.

BHEL is one of India’s largest engineering and manufacturing enterprises in the energy and infrastructure sectors and a leading power equipment manufacturer globally. BHEL serves the core sectors of the economy and provides a comprehensive portfolio of products, systems and services to customers in power, transmission, transportation, renewables, water, defence & aerospace, oil & gas, and industry.

Thus far in the calendar year 2019, BHEL has underperformed the market by falling 39 per cent, as compared to an 8 per cent gain in the S&P BSE Sensex.

At 09:33 am, the stock was trading 21 per cent higher at Rs 54 on the BSE, as compared to a 0.22 per cent rise in the benchmark index. The counter witnessed huge trading volumes with a combined 41 million equity shares changing hands on the NSE and BSE in the first 18 minutes of deal.