BEL’s Rs 2,171-Cr Buyback Offer To commence on 6th Oct

Bharat Electronics (BEL), Defence PSU, today mentioned that its Rs 2,171 crore equity shares buyback offer will commence on October 6.  In a letter of offer for buyback, Bharat Electronics' manager to the buyback offer, IDBI Capital Markets & Securities Ltd mentioned that this Buyback offer will initiate on October 6, 2016, Thursday and close on Friday, October 21, 2016. The record date for regulating the buyback entitlement and names of eligible shareholders is September 27.

The comapany's board has given the approval to a proposal to buy back 1.66 crore shares at a price of Rs 1,305 apiece, for more than Rs 2,171.15 crore, which is not exceeding 25 per cent of the aggregate of the fully paid-up share capital and free reserves. A part of the buyback will accrue to the government.

The Government has 75.02 per cent stake in BEL. The buyback will take place on a proportionate basis via a tender offer, in accordance with the Companies Act, 2013, it added. The department of Investment and Public Asset Management (DIPAM), formerely known as Department of Disinvestment, has sought cash rich PSUs to utilize surplus cash in either capex or buy back.

Last month, the board of Maharatna PSU Coal India had given the approval to a buy back of 25 per cent of its paid up share capital and free reserves totaling to Rs 3,650 crore.  In June, NMDC and MOIL board had approved buy back of Rs 7,528 crore and Rs 863 crore respectively, whereas Nalco had said in May that it would buy back 25 per cent equity for over Rs 2,835 crore.

The government aspires to raise Rs 56,500 crore by selling stakes in state-run  enterprises in 2016-17, out of which Rs 36,000 is to come from minority stake sale in PSUs and rest through strategic sale.

During the morning trade, BEL share price was trading at Rs 1,275, up 0.13 per cent, on the NSE. As of now, the stock is quoting below 0.26 per cent. The 52 week high value of the stock is seen at Rs. 1,416.85 on 4^th Jan’16. The Average Daily Movement of the stock is 33.41. The stock yields 4.42 per cent monthly returns and has the Consolidated FY 15-16 PE Ratio of 22.02. The market cap of the company amounts to Rs. 30549.60 (Cr)and has a book value of Rs. 338.20.

BEL is identified by Dynamic Levels as the top 500 performing stocks for the June quarter amongst the 1700 stocks listed on the NSE.  BEL is fundamentally strong and is safe for investment, according to Dynamic analysts

In order to know more about the support and resistance levels of the stock and also its fundamentals and financials, please a pay a visit to BEL share price history.