BEML Land Assets debuts on the bourses; an upside move expected in the stock

The Government of India holds 54.03 per cent of shares in BEML Land Assets Limited.

In July, 2022, the Ministry of Corporate Affairs sanctioned the scheme of arrangement for the demerger of BEML Limited (Demerged Company) and BEML Land Assets Limited (resulting company). BEML Limited demerged its non-core assets business in the resulting company BEML Land Assets Limited (BLAL). 

It was further decided by the board of BEML Limited that 1 (One) Fully Paid-Up Equity Share of Rs.10 each of BEML Land Assets Limited shall be issued and allotted for every 1 (One) Fully Paid- Up Equity Share of Rs.10 each held in BEML Limited. The government of India holds 54.03 per cent shares of BEML Land Assets Limited. 

On April 17, 2023, exchanges notice informed that effective from Wednesday, April 19, 2023, the equity shares of BEML Land Assets Limited shall be listed and admitted to dealings on the Exchange in the list of T Group of Securities. 

BLAL reportedly holds about 550 acres of land in Bengaluru and Mysore. The company also has 36,592 Sq. Ft of commercial land which includes freeholds and leaseholds. According to analysts, the estimated value of the land assets of BLAL is around Rs 8,400 crore. The land value is estimated at Rs 500-525 per share, say analysts. 

The share of BEML Land Assets Limited is listed at Rs 290.20 on BSE and Rs 287 on NSE, a potential upside move of about 50 – 80 per cent is expected in the stock.