Wednesday, August 31, 2011

Govt approves 5% stake sale in BHEL

The government today approved disinvestment of 5% of its stake in power equipment maker BHEL , that could fetch it about Rs 4,320 crore.

"The government will disinvest 5% equity in the company, out of its share holding of 67.72% through book building process in the domestic market," an official release said.

Disinvestment of stake in power equipment major BHEL was approved by the Cabinet Committee on Economic Affairs (CCEA), which met here today.

Based on today's market capitalisation of Rs 86,532 crore at close on the Bombay Stock Exchange, five per cent stake in the company is worth over Rs 4,326 crore (nearly USD 1 billion).

A price discount of 5% would be given for retail investors, as part of efforts to encourage greater public ownership in Central Public Sector Enterprises, the statement said.

Ten per cent of the shares to be offered for sale through further public offer shall be reserved for the employees, which would also given a price discount of 5%.

The company has a paid up equity capital of Rs 489.52 crore.


Source: www.moneycontrol.com


Thanks,

Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

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