BEML hit a new 52-week high today at Rs.1108.20; it has come off this high but continues to trade in the green at Rs.1080 levels.
The stock price has surged on unconfirmed news that the Govt is reconsidering plans for a strategic stake sale in the company.
News is that the Govt might issue an EoI for a 26% stake sale in BEML, along with management control. Govt currently holds 54% stake.
The company’s Board is scheduled to meet on 2nd Nov for Q2FY20 earnings.
Even before these plans could be officiated, the company as such has been witnessing a series of protests by various unions and associations of employees in the recent past. The workers have said that the relay protest would continue till the government rolls back the privatisation decision.
The Govt has also decided to hive off the surplus land and other assets from the strategic disinvestment of BEML and dispose them of separately. The govt had given approval for the strategic disinvestment of BEML in November 2016. Since then, the associations and unions in BEML have been opposing the the move