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A block deal of 11.48 crore shares of Bharat Heavy Electricals (BHEL) - amounting to Rs 1,906.08 crore and representing a 4.67% stake in the company - took place on the BSE on Monday at a price of Rs 167.20.
Sources said LIC bought a little over 11.48 crore shares from the government through a single block in the first 10 minutes of trade. The deal was part of the government's FY14 disinvestment programme. After the deal, the government holding will decline to 63.06%.
As per Bloomberg data, the government held 67.72% stake in BHEL as in the quarter ended December 2013. LIC, along with its schemes, owns a little over 7% stake in the company.
In the context of a 0.82% fall in the benchmark Sensex, the BHEL scrip declined 2.81% to settle at Rs 162.50 on the BSE. The stock has gained 36% in the last six months, even as year-to-date gains are almost flat. In the last 52 weeks, the stock has touched a high of R208.70 and a low of Rs 100.35.
The stock trades at a one-year forward EV/Ebitda of nearly eight times, and price-to-earnings of five times, as per Bloomberg data.
About 39 brokerages have a `sell' rating on the stock, while eight have a 'buy' rating.
After Monday's deal, the government has raised about R5,300 crore via eight PSU stake sales. In addition, the government has raised R2,160 via NHPC's share buyback and R16,845 crore through Coal India's special dividend, taking the total proceeds to R25,700 crore.
In a separate development, the capital goods major bagged an engineering, procurement and construction (EPC) 1,980-Megawatt (MW) power project contract worth R7,900 crore.
The contract requires BHEL to set up three coal-fired supercritical thermal units of 660 MW each, the company said in a stock exchange announcement on Monday.
The company, via a stock exchange announcement last week, said it had secured a contract worth R321 crore for setting up a 206-MW Hydro Electric Project in Punjab. BHEL had reported a net profit of R694.81 crore in the quarter ended December 2013, down 41% from corresponding period last year. The quarterly decline in the October-December profit was the sixth straight one for the Delhi-based PSU.
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