Shares of BEML Land Assets was trading 5 percent lower on Wednesday as the parent BEML listed its demerged non-core business entity on the bourses today. The shares had surged more than 4 percent intraday on Tuesday, a day ahead of the listing.
The stock made a debut at Rs 290.20 on the BSE while it listed at Rs 287 on the NSE on April 19. The large expectation was that BEML Land Assets would be listed at around Rs 300 apiece.
At 10:44am, shares of BEML Land Assets fell 5 percent to Rs 275.70 on the BSE, while BEML shares were down 0.6 percent at Rs 1,239.50.
BEML in October 2022 demerged its non-core businesses into BEML Land Assets Ltd. The main assets of the demerged entity will reportedly be some total 550 acre of prime land in Bangalore and Mysore.
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The demerger was to specify the value of its core business – manufacturing heavy equipment like earth movers and defence equipment – and fixed assets separately, which would clear the way for privatisation.
As per the demerger proposal, BEML shareholders will receive shares in BEML Land Assets Ltd in the 1:1 ratio.
The expectation is that the disinvestment process will begin now that the demerged entity is listed.
The government seeks strategic divestment of 26 percent post BEML demerger process of non-core assets.
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