BEML surges 20% as government clears 26% strategic sale

The stock surged 20% to Rs 1,189 on the BSE in intra-day

BEML has surged 20% to Rs 1,189 on the BSE in intra-day after the company said the Cabinet has given an ‘in-principle’ approval for strategic disinvestment of 26% equity shares in BEML out of the government’s shareholding of 54.03%.

“The Government of India, Ministry of Defence, has 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 Limited out of Government of India shareholding of 54.03%,” BEML said on Friday after market hours.

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

After the strategic sale, the government stake in the public sector undertaking would come down to 28.03%.

BEML operates on three major business verticals for associated equipment manufacturing - mining and construction, rail and Metro, and defence and aerospace.

At 09:42 am; the stock was up 16% at Rs 1,152 on the BSE as compared to 0.05% decline in the S&P BSE Sensex. The counter has seen huge trading volumes which jumped more than 10-fold. A combined 2.42 million shares changed hands on the counter so far against an average sub 200,000 shares that were traded daily in past two weeks on the BSE and NSE.