BEML zooms 18 per cent post approval by government for stake sale

The Central government-owned engineering and manufacturing major BEML spiked 18 per cent in early morning trade post receiving in-principal approval from government of India for stake sale to bring it down well below 50 per cent, which will give complete autonomy to the company in its operations.

BEML earlier called Bharat Earth Movers Ltd, in a late exchange filing on the BSE informed of receiving in-principal approval from Government of India for the stake sale.

The company has received 'in principle' approval from the Cabinet Committee on Economic Affairs (CCEA) of the Government of India, for strategic disinvestment of 26 per cent equity shares in BEML out of Government of India's total shareholding of 54.03 per cent.

The shares would be sold to strategic buyers to be identified by the Government of India by following due procedures.

The strategic buyer will also help the company to go ahead with its future plans as fresh capital infusion and technological transfer will become easier by virtue of new investors.

BEML stock has hardly seen any action in the past one year. Therefore, the current move by the government may bring in the much-needed bounce into the stock. The stock of BEML was trading at Rs 1,146.40, up about 16 per cent on the NSE.