BHEL's board approved on 23 May 2011 the proposal to divest 5 per cent stake in the power equipment major. The decision is likely to fetch over $1 billion (about Rs 4,500 crore) for the government. The proposed offloading of government's 5 per cent stake in BHEL is part of Centre's ambitious programme to mop up Rs 40000 crore through public sector disinvestments in 2011. The stake sale would garner around Rs 4500 crore based on the current market price. Ten per cent of the equity to be offloaded under disinvestment programme would be reserved for employees.
BHEL also approved the split shares having a face value of Rs 10 into five shares of Rs 2 each. The board recommended 179 per cent dividend, amounting to Rs 17.90 per share for 201011, which would be in addition to interim dividend of Rs 13.25 per share. The company's total income on a consolidated basis rose to Rs 43678.62 crore in 2010-11 from Rs 34498.51 crore in 2009-10.
The government owns 67.72 per cent stake in BHEL. So far this financial year, the government received up Rs 1162 crore through disinvestment of 5 per cent stake in PFC in May 2011 and with FPOs of SAIL and ONGC expected in the coming months.
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