The share price of BEML Limited, previously Bharat Earth Movers Limited, rose nearly 10% to hit its 52-week high on the BSE over reports that the government has started the divestment process for BEML.
The BEML stock opened with a gain of 8.96% today at Rs 1,099 against the last close of Rs 1,008.65 on the BSE. Later, the stock climbed overall 9.87% to the day's high of Rs 1,108.2, also its 52-week high.
Volume-wise, 1.1 lakh and 17.1 lakh shares changed hands on the BSE and NSE counters, both above 5, 10 and 30-day average volume traded.
As per market depth data available on the BSE, there was 58% selling against 43% buying on the current share value. Today, the stock has outperformed 'Commercial Vehicles' by 5%, that has risen 1.61% intraday.
BEML share trades higher than 5, 20, 50, 100 and 200-day moving averages. The share value has risen nearly 14% in the last week and 19% year-to-date.
The government is reportedly revisiting plans for strategic stake sale in the public sector undertaking and may soon issue an expression of interest (EoI) for 26% stake sale in BEML from the current 54.03% keeping the management control.
Defence Ministry, DIPAM (Department of Investment and Public Asset Management) officials met on BEML stake sale on the direction of PMO, it added.
The company had earlier announced a board meet on November 2 to consider and approve the un-audited financial results for the second quarter ended September 2019.
Earlier reports had suggested government's stake sale plans for Bharat Petroleum Corp Ltd, Shipping Corporation of India (SCI), NEEPCO and THDC, over its target of mobilising Rs 1.05 lakh crore from disinvestment proceeds.
By Rupa Burman Roy