Govt shelves Bhel disinvestment on valuation, order book concerns

The disinvestment department has shelved plans to sell a stake in power equipment maker Bharat Heavy Electricals Ltd. (Bhel), citing valuation concerns and a depleting order book. Sources said the department has withdrawn the 5% disinvestment proposal in view of Bhel’s low share price, decreased capital expenditure and less demand for power-sector equipment. The Bhel share hit a one-year low on the BSE on Monday, declining 19.64% to Rs120.05, after the company’s June quarter net profit almost halved to Rs465.43 crore on account of lower sales. The scrip has lost over 60% since 2011, when the stake sale was approved. more at: http://www.livemint.com/Companies/v9FoAwSdJtqw7lUCLvtB1J/Govt-shelves-Bhel-disinvestment-on-valuation-order-book-con.html