BEML share climbed to its 52 week high amid reports that companies such as Tata Motors, Mahindra, Ashok Leyland, Bharat Forge Ltd and Megha Engineering are likely to submit expressions of interest for the government’s stake in the PSU. Share of BEML zoomed 19.03% to a fresh high of Rs 1,394.95 against previous close of Rs 1,171.90 on BSE.
The stock opened with a gain of 5.64% at Rs 1,238 on BSE. BEML share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The government has invited expressions of interest to offload 26 per cent out of its 54.03 per cent stake in the state-run defence and construction equipment manufacturer. The stake sale will also lead to transfer of management control to the successful bidder. BEML is involved in sectors like defence, rail, power, mining and infrastructure.
SBI Capital Markets has been appointed as the advisor by the government for advising and managing the proposed strategic disinvestment of BEML. In October 2016, the Cabinet Committee on Economic Affairs had given in-principal approval for strategic disinvestment of 26 per cent equity shares in BEML Ltd.
The Cabinet has already approved the strategic sale of BEML by divesting 26 percent of the government stake. At present, the government holds 54.03 percent in the defence public sector undertaking.