15% Upper Circuit Hit by Multibagger PSU Maharatna Following Joint Venture With Coal India
Shares of Bharat Heavy Electricals Ltd. (BHEL), a prominent large-cap public sector organization, shot up around 13% in today’s trading after the company signed a joint venture agreement (JVA) with Coal India Ltd. on February 28, 2024. As of the time this report was written, the most recent trading price of Bharat Heavy Electricals shares on the BSE was Rs 265.50 per share, up 12.57% intraday. The opening price of BHEL shares was Rs 237.00, and they closed the day at both the day’s high of Rs 269.35 and low of Rs 237.00. View the information below:
Coal India and Bharat Heavy Electricals Ink a JV, Shares Enlarge: In order to form a Joint Venture Company to undertake Coal to Chemicals business, BHEL signed a JVA with Coal India on February 28, 2024, according to the company’s BSE filing dated February 28, 2024. Initially, a Coal to 2000 TPD Ammonium Nitrate Plant will be set up using BHEL’s in-house developed PFBG (Pressurized Fluidized Bed Gasification) technology.
The key parameters of the deal were also briefly detailed in the BSE filing. “Equity shareholding shall be 51% with CIL and 49% with BHEL,” the deal states. The Joint Venture Company will have an initial paid-up share capital of INR 1,00,000 (INR One Lakh only) and will be formed as a “Private Limited” company. The Indian state of Odisha will host the JVC’s registered office. d. Regarding the JVC Board of Directors, BHEL and CIL will each be able to propose three (3) directors for the Board.”
Performance and Return of BHEL Shares Over Years: Bharat Heavy Electricals’ shares have traded on the BSE for Rs 269.35 at their 52-week high and Rs 67.63 at their 52-week low, respectively. Today, BHEL shares soared at a new 52-week high, hitting the upper circuit by 15%. The market value of the firm is Rs 92,257.27 crore. Maharatna BHEL shares have soared 52% over the last three months, 91% over the past six months, and 255% over the past year. The shares of Bharat Heavy Electricals have increased 439% in the previous two years.
Performance and Return of Coal India Shares: In the meanwhile, Coal India shares surged by 1.44% today. The current market value of a share of Coal India is Rs 454.90 on the BSE. The market capitalization of PSU Maharatna Coal India is Rs 2,80,342.51 crore. Shares of Coal India have increased 83% over the previous six months and 104% over the last year.
BHEL About: BHEL is the biggest engineering and manufacturing company in India, operating in the infrastructure and energy industries. Founded in 1964, it is one of the world’s top producers of power equipment and among the first to play a significant role in the establishment of an Aatmanirbhar Bharat. On its official website, BHEL states that it has been awarded the MAHARATNA designation by the Government of India.
