The board of directors of BEML Ltd, a Miniratna PSU under the Ministry of Defence, has recommended a stock split in the ratio of 1:2. This decision, announced on Monday, July 21, 2025, marks the first-ever stock split for the company.
Details of the Stock Split
The stock split means that each existing equity share with a face value of ₹10 will be subdivided into two equity shares with a face value of ₹5 each, fully paid up. For example, if an investor holds 100 shares of BEML with a face value of ₹10 each, after the stock split, they will hold 200 shares with a face value of ₹5 each. This split is subject to the approval of the company's shareholders.
BEML stated that the share split aims to comply with DIPAM guidelines on capital restructuring, encourage wider participation from retail and small investors, and enhance the liquidity of its shares in the stock market.
Record Date
The record date, which is the date on which shareholders must be on the company's books to be eligible for the stock split, will be announced later after the shareholder's approval.
Rationale for the Stock Split
Companies often undertake stock splits to increase liquidity and make their shares more affordable to small traders and investors. By reducing the face value of the shares, the market price is also adjusted, potentially attracting more investors and increasing trading volume.
Impact on Share Capital
Post-split, the authorized share capital will remain at ₹100 crore but will be restructured as 20 crore equity shares of ₹5 each, replacing the earlier 10 crore shares of ₹10 each. Similarly, the issued, paid-up, and subscribed share capital will remain at ₹41.64 crore, now comprising 8.32 crore equity shares of ₹5 each.
BEML's Stock Performance
On Monday, July 21, BEML shares traded in the green at ₹4411 around 11 AM. BEML's share price has seen considerable growth in recent years. According to BSE data, the shares have rallied 40% in the last three months. Over a longer period, the stock has delivered impressive returns, with a 162% return in 2 years, 290% in 3 years, and 713% in 5 years.
Recent Developments at BEML
BEML has been in the news for several positive developments. In June 2025, BEML signed licensing agreements with DRDO for manufacturing key mobility and support systems for the Indian Army's Armoured Corps. The company also secured export orders worth USD 6.23 million for supplying heavy-duty bulldozers and motor graders to Russia and Uzbekistan.
Financial Performance
In addition to the stock split announcement, BEML reported a strong financial performance for Q4FY25. The company posted an 11.97% year-on-year rise in its profit after tax (PAT) at ₹287.55 crore, up from ₹256.80 crore in the same period last year. Revenue from operations grew 9.18% YoY to ₹1,652.53 crore, compared to ₹1,513.65 crore in Q4FY24.
