The share price of Balmer Lawrie surged today on reports that its holding company would invite expressions of interest (EoI) for the company's divestment through strategic sale. The share jumped 14.96 per cent on the Bombay Stock Exchange to close at Rs 101.05.
The scrip hit a new 52-week high of Rs 104.40 and a low of Rs 89 during the day. Around 2.31 lakh shares were changed hands.
The scrip has been among the star performers on the bourses over the past few months on optimism that the divestment would unlock value in the scrip.
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From Rs 49 on May 2, the scrip has surged 51.5 per cent to Rs 101.05 today. The Kolkata-based Balmer Lawrie & Co has informed BSE that the Union ministry of disinvestment has directed Balmer Lawrie Investments Ltd (the holding company --1,00,64,700 equity shares of Rs 10 each of the company, representing about 61.8 per cent of the equity share capital of the company) to release an advertisement for inviting EoIs by possible strategic partners for buying the equity stake.
The government holds a 59.6 per cent stake in Balmer Lawrie Investment, which in turn holds a 61.8 per cent stake in Balmer Lawrie & Co.
The company manufactures industrial packaging, barrels and drums, LPG cylinders, greases and lubricants, leather chemicals, functional additives and marine freight containers.
It also undertakes tea exports and trading, travel, tours, and cargo and engineering services such as turnkey projects, energy-audit and consultancy, and freight-container repairs. It is the largest manufacturer of steel barrels in India.