Share price of Bharat Heavy Electricals Ltd (BHEL) fell over 4 per cent on the bourses on Tuesday after news reports surfaced that the Cabinet is likely to approve disinvestment of five per cent stake in the state-run power equipment major next week.
BHEL opened on a weaker note on the Bombay Stock Exchange at Rs 2,041, then slipped to a low of Rs 1,953, down 4.49 per cent from its previous closing price.
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A similar trend was witnessed on the National Stock Exchange, where the scrip, after opening at Rs 2,038, closed at Rs 1951.70, down 4.66 per cent from its last close.
Marketmen said investors were rattled by the divestment proposal, even as the broader market was trading in the negative zone.
In May this year, BHEL's board had approved the proposal to divest a 5 per cent stake in the company. The offloading of government's stake is part of the Centre's ambitious programme to mop up Rs 40,000 crore through public sector disinvestment in the current financial year.
Currently, the government owns a 67.72 per cent stake in BHEL.