Bhel rose 0.98% to Rs 257 at 12:25 IST on BSE after the company, Mishra Dhatu Nigam and Hindustan Shipyards have come together to form a consortium for building submarines indigenously.
The company made announcement during market hours today, 30 December 2014.
Meanwhile, the S&P BSE Sensex was down 26.82 points or -0.12% at 27,362.99.
On BSE, so far 1.17 lakh shares were traded in the counter as against average daily volume of 5.91 lakh shares in the past one quarter.
The stock hit a high of Rs 258.90 and a low of Rs 254 so far during the day. The stock hit a 52-week high of Rs 291.50 on 26 May 2014. The stock hit a 52-week low of Rs 145.75 on 14 February 2014.
The stock had underperformed the market over the past one month till 29 December 2014, declining 10.13% compared with Sensex's 4.52% fall. The scrip had however outperformed the market in past one quarter, rising 23.04% as against Sensex's 3% rise.
The large-cap electric equipment maker has equity capital of Rs 489.52 crore. Face value per share is Rs 2.
In a strategic move aimed at harnessing their complimentary capabilities, Bharat Heavy Electricals (Bhel), Mishra Dhatu Nigam (Midhani) and Hindustan Shipyards (HSL) have come together to form a consortium for building submarines indigenously The consortium will jointly stake claim with the Ministry of Defence for being considered as a prospective bidder for the proposed P-75 (I) project of the Indian Navy for building six submarines at an Indian shipyard. To this effect, an MoU towards setting up the consortium, was signed here between Bhel, Midhani and HSL on 26th December 2014. The consortium between three PSUs - Bhel, an engineering Maharatna with five decades of experience in design, development and manufacture of a variety of equipment for crucial infrastructure sectors like power generation & transmission, industry, transportation, oil & gas, renewable, water and defence sectors; HSL, a defence PSU engaged in ship building, repairs and submarine retrofit, and Midhani, another defence PSU engaged in development and manufacture of a wide range of super alloys and special-purpose steel for applications in defence, aerospace, atomic energy, etc., is a giant step in the direction of the 'Make In India' initiative of the government, especially for catering to the defence sector.
The consortium will also provide the country with a credible domestic alternative for manufacture of submarines. Bhel has emerged as a reliable supplier of strategic equipment and services to Indian Defence and Paramilitary forces for over 20 years now. Bhel has large infrastructure including dedicated engineering, R&D and manufacturing facilities at several locations to manufacture various types of equipment and provide complete services to meet the requirements of the Indian defence sector.
Meanwhile, with respect to news article titled "Bhel eyes business opportunities in Mozambique, Laos", Bhel clarified during market hours it has not communicated the subject information to media persons. Further, it is clarified that the subject matter is an invitation for an Expression of Interest (EoI) and as such it is not a price sensitive information.
Bhel's net profit fell 72.6% to Rs 124.84 crore on 33.1% decline in total income to Rs 6340.14 crore in Q2 September 2014 over Q2 September 2013.
The Government of India holds 63.06% stake in the firm as at 30 September 2014.
Powered by Capital Market - Live News
