BEML surges 13% as report suggests Tata, Mahindra eyeing stake in firm

The board approved the appointment of M/s Deloitte Haskins & Sells LPP, as Consultant for advising, undertaking and implementing demerger of non-core assets of BEML

Shares of BEML surged 13 per cent to hit a 52-week high of Rs 1,326 on the BSE in intra-day trade on Monday amid reports that at least six companies, including Tata Motors, Mahindra and Mahindra and Ashok Leyland, are looking to buy a 26 per cent stake in the state-run defence equipment maker.

Bharat Forge and Megha Engineering and Infrastructure may also submit expressions of interest for the government’s stake in BEML, the Mint reported quoting two people aware of the developments.

On Friday, March 5, BEML informed the stock exchanges that the board has approved the appointment of M/s Deloitte Haskins & Sells LPP, as Consultant for advising, undertaking and implementing demerger of non-core assets of the Company, pursuant to the directives of the government.

The government currently holds 54.03 per cent of the total equity share capital of BEML. It has decided to disinvest 26 per cent of the total equity share capital of the company through strategic disinvestment with the transfer of management control. The government has appointed SBI Capital Markets (SBICAP) as its transaction advisor to advise and manage the strategic disinvestment process.

The department of investment and public asset (Dipam) initially set March 1 as the deadline for submission of interest but later extended it to March 22.

In the past three months, the stock of BEML has outperformed the market by zooming 75 per cent, as compared to 11 per cent risen in the S&P BSE Sensex.