BEML surged 5% to Rs 1023 after the company said that its promoter Government of India (GoI) has decided to divest 26% stake in the company.
The Government of India (GoI) has decided to disinvest 26% stake in BEML through strategic disinvestment with transfer of management control.
"GoI has appointed SBI Capital Markets Limited (SBICAP) as its Transaction Advisor to advise and manage the strategic disinvestment process, the company said in a BSE filing made on Saturday (2 January 2021).
The company said that the disinvestment process is to be implemented through open competitive bidding route.
As on 30 September 2020, the government held 54.03% stake in BEML.
BEML is a multi-technology schedule A company under the Ministry of Defence. The company operates in three verticals viz. defence & aerospace, mining & construction and rail & metro.
The company posted a consolidated net profit of Rs 17.22 crore in Q2 September 2020 compared with net loss of Rs 27.20 crore in Q2 September 2019. Revenue from operations stood at Rs 663.72 crore in Q2 FY21, falling 3.40% from Rs 687.11 crore in Q2 FY20.
In the past one month, the stock has zoomed 37.56% while the benchmark S&P BSE Sensex added 6.67% during the same period.
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