BHEL gains on acquisition plans

Shares of BHEL have advanced by 1.5% to Rs2409

Shares of BHEL have advanced by 1.5% to Rs2409 after reports stated that the company’s unit plans to consider four-five companies as candidates for acquisition.

We are looking at investing Rs2.5-4bn for the acquisition, executive director, A V Krishnan was quoted as saying.

Last year, the unit acquired Bharat Heavy Plates and Vessels Ltd in Visakhapatnam, another public sector unit. “We are looking at a 100% take over and once it is acquired, it will become a subsidiary of BHEL,” he added.

Reports also stated that the company is in talks with L&T and Pipavav Shipyard to jointly build off-shore oil rigs. The company had earlier decided to quit its deep water oil rig business as it was unable to find a suitable partner due to investment constraints, added reports.


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