BEML shares to trade ex-demerger on Thursday; stock rises 2%

New Delhi: Shares of BEML rose about 2 per cent in Wednesday's trade, ahead of their ex-demerger date on Thursday. The company is hiving-off its land assets.

The company has fixed Friday, September 9, as its record date to determine the eligibility of shareholders for issuance of bonus shares, whereas the shares will trade ex-demerger from Thursday, September 8.

The company fixed the issuance ratio at 1:1 which means that the eligible shareholders of BEML will get one equity share of newly listed BEML Land Assets for every share of BEML held by them.

Shares of BEML were trading 2 per cent higher at Rs 1,849.40. The scrip had settled at Rs 1,822.45 on Tuesday.

In order to fast-track privatisation, BEML is demerging its land assets business from the core business to specify the real value of its core business and fixed assets separately.

The government is likely to invite expressions of interest (EoIs) for the strategic disinvestment of BEML in weeks to come as it looks to speed up the privatisation of non-strategic state-run entities.

The demerger of land and non-core assets of both companies, which has held up its stake sale plans, is expected to be completed in the near term.

The company board, which met on August 24, 2022, had fixed September 9 as the record date for the same. The company informed the MCA about the same.

If an investor wants to be eligible for the issuance of bonus shares, Wednesday is the last day to buy shares to be eligible for the same as they will get the delivery of shares in demat account on record date only.

Bengaluru-headquartered Bharat Earth Movers (BEML) is an Indian PSU which manufactures a variety of heavy equipment, such as that used for earth moving, transport and mining

Shares of BEML have risen more than 26 per cent in the last one month, whereas the stock is 40 per cent up in the last one year, data suggests.

The state-run player will host its 58th annual general meeting (AGM) on Friday, September 23, 2022, where the company board may consider the announcement of dividend for its shareholders.