BEML Land Assets debuts on D-St; stock hits lower circuit on maiden session

Shares of BEML Land Assets (BLAL), the demerged entity of BEML, were listed at the bourses on Wednesday, April 19. The stock was listed flat and touched its upper circuit. Later, it dropped to its lower price band. 

BEML spun off its wholly owned non-core assets subsidiary as BEML Land Assets to ramp up its 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.

Shares of BEML Land Assets were listed at Rs 290.20 on Wednesday and hit an upper circuit of 5 per cent to Rs 304.70. However, the stock saw profit booking and dropped to a lower circuit limit of 5 per cent to Rs 275.70. The stock gyrated in the range of 10 per cent during the session.

BEML Land Assets has been listed in the 'T' segment or Trade to Trade segment by the BSE, which means that they are not allowed for intraday trading and compulsory delivery of the stock is mandatory.

BEML intended to hive off identified surplus or non-core assets separately and exclude it from the process of strategic disinvestment, which led to the listing of BLAL. BLAL is under the administrative control of the Ministry of Defence, Department of Defence Production, Government of India.

BEML is a state-run mining and construction equipment manufacturer.  The government is looking to sell 26 per cent of its stake along with management control in BEML. It held a 54.03 per cent stake in the defence PSU as of December 31, 2022.

BLAL reportedly holds about 550 acres of land in Bengaluru and Mysore. According to analysts, the estimated value of the land assets of BLAL is around Rs 8,400 crore.

Also read: YES Bank, RBL Bank, Bandhan Bank, IndusInd, Kotak Bank: Private bank shares that FPIs cut stake to in Q4

Also read: ICICI Lombard shares hit hard. What Macquarie, others say on insurance stock