BEML Approves 1:2 Stock Split to Boost Liquidity and Retail Participation
By Shishta Dutta | Published at: Jul 24, 2025 11:13 AM IST
Bengaluru, July 21, 2025 – BEML Limited (NSE: BEML, BSE: 500048) has announced a stock split in the ratio of 1:2, following approval by its Board of Directors at the company’s 414th board meeting held today. The proposal is subject to shareholders’ approval in the upcoming general meeting. The move will not alter the total market cap or the shareholders’ holdings, but will make the stock more comparable in price to sectoral or index peers.
BEML Share Price Movement
The share opened quite strongly (₹4327.80) and reached a high of ₹4423.20 soon. At 10:30 AM, it trades at ₹4325.20 (0.92% higher than the previous day’s close). The stock has rallied more than 36% in the past three months. It has a P/E ratio of 61.02 compared to the industrial average of 52.25.
Key Stock Split Details
| Particulars | Pre-Split | Post-Split |
|---|---|---|
| Face Value per Share | ₹10 | ₹5 |
| No. of Issued, Subscribed & Paid-up Shares | 4,16,44,500 | 8,32,89,000 |
| Total Paid-up Share Capital | ₹41.64 crore | ₹41.64 crore |
| Authorised Share Capital | ₹100 crore (10 Cr shares of ₹10 each) | ₹100 crore (20 Cr shares of ₹5 each) |
What This Means for Investors
Following the 1:2 stock split, each existing share of ₹10 face value will be converted into two shares of ₹5 face value. This change does not impact the total investment value of shareholders. For example, a shareholder owning 100 shares before the split will hold 200 shares after the split, with the same overall value.
The total paid-up capital remains unchanged at ₹41.64 crore, but the number of outstanding shares doubles, making BEML’s shares more affordable and liquid, especially for retail investors. The authorised capital has also been restructured to allow 20 crore shares of ₹5 each, instead of 10 crore shares of ₹10 each.
Corporate Action Table
| Action Item | Description |
|---|---|
| Split Ratio | 1:2 (1 share of ₹10 split into 2 shares of ₹5) |
| Rationale for Split | – Compliance with DIPAM capital restructuring norms- Enhanced liquidity- Increased retail participation |
| Record Date | To be announced post shareholder approval |
| Completion Timeline | Estimated 2-3 months from shareholder approval |
| Share Class | Equity Shares |
| SEBI Regulation | Reg 30 of SEBI (LODR) & SEBI Circular dated 13-Jul-2023 |
This outlines the procedural and regulatory framework for the stock split. It highlights the underlying purpose-to comply with Department of Investment and Public Asset Management (DIPAM) guidelines, improve accessibility for smaller investors, and stimulate trading activity by increasing share liquidity. Shareholder approval will trigger the announcement of the record date, with completion expected within two to three months.
Strategic Rationale
BEML emphasised that the split will broaden retail investor participation, enhance market liquidity, and align the company’s capital structure with government norms on equity restructuring. The alteration of the capital clause in the company’s Memorandum of Association has also been proposed to reflect the revised structure.
Company Overview
BEML Limited is a Government of India enterprise under the Ministry of Defence. It is a key player in the manufacture of heavy earthmoving equipment, metro coaches, defence vehicles, and mining machinery. The company is listed on both the NSE and BSE and operates across three verticals: Defence & Aerospace, Mining & Construction, and Rail & Metro.
REF: https://nsearchives.nseindia.com/corporate/BEML_21072025133227_Outcome_SE_21072025_SIGNED.pdf
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