Bhel surged 13.78% to Rs 225.80 at 10:49 IST on BSE on reports that the Cabinet is likely to ratify today, 13 May 2014, the decision to sell 4.66% stake in the company through a block deal.
Meanwhile, the BSE Sensex was up 385.55 points, or 1.64%, to 23,936.55.
On BSE, so far 16.21 lakh shares were traded in the counter, compared with an average volume of 23.79 lakh shares in the past one quarter.
The stock hit a high of Rs 229.85 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 200.05 so far during the day. The stock hit a 52-week low of Rs 100.35 on 20 August 2013.
The stock had outperformed the market over the past one month till 9 May 2014, rising 6.72% compared with 1.29% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 24.62% as against Sensex's 12.85% rise.
The large-cap company has an equity capital of Rs 489.52 crore. Face value per share is Rs 2.
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The Finance Ministry in March 2014 had sold 4.66% stake in Bhel to Life Insurance Corporation (LIC) for about Rs 1889 crore.
LIC purchased 11.41 crore shares in Bhel at a price of Rs 165.55 per share through a block deal on the BSE.
Following the block deal, the government stake in Bhel came down to 63.06%, from 67.72%.
The Empowered Group of Ministers, headed by Finance Minister P Chidambaram, had in February 2014 decided on the timing and mode of disinvestment in Bhel. However, the CCEA approval was pending for the stake sale.
In August 2011, the Cabinet had cleared the sale of 5% stake in Bhel through a follow-on public offer (FPO). However, market conditions led to a delay in the issue and the company in April 2012 withdrew the draft prospectus filed with market regulator Sebi.
The company will announce Q4 results on 28 May 2014. Bhel's net profit fell 41.2% to Rs 694.81 crore on 15.7% decline in net sales to Rs 8462.38 crore in Q3 December 2013 over Q3 December 2012.
Bhel is the largest engineering and manufacturing enterprise in India in the energy related/infrastructure sector. The company caters to the core sectors including power, transmission, industry, transportation, renewable energy, oil & gas and defence.
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