BHEL zooms up to new high

BHEL is currently amongst the top gainers of the day, opening higher at Rs.200.80 and going on to hit a new 52-week high at Rs.217.35. The stock presently remains up by over 8% at Rs.214 levels.

The PSU stock is hitting this new high on unconfirmed news that the Cabinet is likely to give a formal consent to BHEL to sell 4.66% stake through a block deal. This kind of sale, through block deal is known as post-facto approval for disinvestment, which is much better than Follow On Public Offers, where there seems to be no appetite for PSU stocks at the moment.

Few months ago, LIC had bought 4.66% stake in BHEL through a block deal on BSE at Rs.165.55/share, post which Govt’s stake currently stands at 63.06%. The decision for another block sale in on the agenda of the Cabinet Committee of Economic Affairs for today; thus the surge in the price.