Select PSU shares rally; BEML, ITDC surge up to 13%

So far in 2017, ITDC zoomed 165%, while BEML surged 88% on BSE

Shares of BEML and India Tourism Development Corporation (ITDC) have rallied by up to 13% in intra-day trade after the Cabinet on Wednesday decided to set up a high-powered committee of Union ministers, including Finance Minister Arun Jaitley, to expedite strategic disinvestment of public sector undertakings (PSUs).

According to PTI reports, the panel will decide on matters relating to terms and conditions of the sale from the stage of inviting of expressions of interest (Eols) till inviting of financial bid, the statement said. CLICK HERE TO READ FULL REPORT

BEML was trading 9% higher at Rs 1,864, after hitting a record high of Rs 1,879 on BSE in intra-day trade. The trading volumes on the counter jumped three-fold with a combined 3.16 million shares changing hands on both the exchanges.

In January 2017, BEML informed the stock exchanges that the Government of India, Ministry of Defence, had communicated 'in-principal' approval of the Cabinet Committee on Economic Affairs (CCEA) of the Government of India, for strategic disinvestment of 26% equity shares in BEML out of Government of India shareholding of 54.03%.

The company said shareholding would be sold to the strategic buyer/s to be identified by the Government of India by following due procedure.

So far in 2017, the stock of BEML zoomed 88% from Rs 1,001, against 19% rise in the S&P BSE Sensex.

ITDC has also surged 13% to Rs 564 on BSE in intra-day trade on back of six-fold jump in trading volumes. A combined 327,103 shares changed hands on the counter on BSE and NSE till 12:27 pm. The stock soared 165% from Rs 213, in 2017, so far. It touched a record high Rs 746 on April 24, in intra-day trade.

As of June 30, 2017, the Government of India holds 87.03% stake in ITDC. Among public shareholders, The Indian Hotels Company has 7.87% holding in the company, the shareholding pattern data shows.