Maithan Alloys Limited, a prominent player in the Indian metals industry, announced the strategic acquisition of shares in two leading defence companies: Bharat Electronics Limited (BEL) and Hindustan Aeronautics Limited (HAL). This move signifies Maithan Alloys’ commitment to diversifying its investment portfolio and capitalising on long-term growth prospects within the Indian defence sector.
The shares in BEL and HAL were acquired through the stock exchange on May 15, 2024. While the holdings represent a small percentage of each company’s overall shareholding (0.01% for BEL and 0.01% for HAL), this investment demonstrates Maithan Alloys’ confidence in the long-term potential of the Indian defence sector. The company emphasises that it does not intend to seek control of either BEL or HAL but views these acquisitions as a strategic investment opportunity.
Maithan Alloys acquired 6,45,700 shares in BEL for a cash consideration of ₹15.02 crore. Similarly, the company purchased 36,600 shares in HAL for a cash consideration of ₹14.99 crore.
Maithan Alloys’ strategic acquisitions in BEL and HAL underscore the company’s proactive approach to portfolio diversification and its recognition of the Indian defence sector’s robust growth potential. The company’s long-term investment focus aligns with the nation’s growing defence needs and technological advancements.
Maithan Alloys manufactures and exports all three bulk ferro alloys: ferro manganese, Silica Manganese, and ferro silicon. On May 16, 2024, Maithan Alloys’ shares opened at ₹1,267.45 and touched the day high of ₹1,270.00 at 12:50 PM.
BEL, a prestigious Navratna Public Sector Undertaking under the Ministry of Defence, is a household name in India’s defence electronics sector. Renowned for its state-of-the-art electronics products and systems, BEL serves as a crucial supplier to the Indian Armed Forces. Beyond its core defence focus, BEL has diversified into other promising areas, including homeland security solutions, smart city technologies, and e-governance initiatives.
This public sector enterprise, overseen by the Department of Defence Production, plays a pivotal role in India’s aviation and aerospace landscape. HAL excels in the design, development, manufacture, repair, and overhaul of a diverse range of products, encompassing aircraft, helicopters, aero engines, avionics, accessories, and aerospace structures.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: May 16, 2024, 3:32 PM IST
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