BEML Land Assets freezes at 5% lower circuit post stock market debut

Shares of BEML Land Assets (BLAL) were locked at the 5 per cent lower circuit at Rs 275.70 on the BSE on Wednesday. The stock opened at Rs 290.20, and hit a high of Rs 304.70 in the intra-day trade, before erasing gains. Around 460,000 equity shares had changed hands, and there are pending sell orders for about 200,000 equity shares on the NSE and BSE till 10:47 AM.

The equity shares of BLAL got listed, and were admitted to dealings on the Exchange in the list of T Group of securities, BSE said in a notice. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

BLAL is under Administrative control of Ministry of Defence, Department of Defence Production, Government of India.

BEML had incorporated as a wholly owned subsidiary (WOS), namely BEML Land Assets, on July 15, 2021 for the purpose of demerger of identified surplus/non-core assets between BEML and BLAL as part of strategic disinvestment process initiated by the Government of India. The existing BEML shareholders have given shares in the new demerged entity in a 1:1 ratio.

BEML had 'in-principle' decided to disinvest 26 per cent of the equity share capital of BEML through strategic disinvestment along with transfer of management control as approved by Government of India.

Based on the decision of Government of India, BEML intends to hive-off of Identified Surplus/ Non-core assets separately and exclude it from the process of strategic disinvestment. In order to achieve the above objective, Identified Surplus/ Non-core Assets are being demerged into BLAL.