BEML rallies as government approves 26% strategic sale

NEW DELHI: BEML rallied nearly 20 per cent in morning trade on Monday after the government approved of 26 per cent strategic sale in state-run BEML Ltd.

The company in a notification to stock exchanges informed that the government, ministry of defence has approved of the strategic sale plan on Friday.

A senior finance ministry official said that the stake sale may take place early next fiscal. Employee union said that they will oppose the move.

At 01:31 pm; BEML was trading 14 per cent higher at Rs 1135. It hit a low of Rs 977.10 and a high of Rs 1,188.50 in the first 30-minutes of trade.

The government currently holds 54.03 per cent stake in the firm. "The said shareholding would be sold to the strategic buyer(s) to be identified by the government of India by following due procedure," the firm added.