BHEL share price gain 1% despite Stock Exchanges impose fine

Bharat Heavy Electricals (BHEL) share price rose 1 percent in the early trade on February 26 despite Stock Exchanges imposing a fine on the company for non-compliance.

At 09:22 am Bharat Heavy Electricals was quoting at Rs 231.95, up Rs 2.20, or 0.96 percent, on the BSE.

The company received notice from BSE Ltd. and the National Stock Exchange of India Limited (NSE) each imposing a fine of Rs 5,42,800 for non-compliance with Regulation 17 (1) of SEBI (LODR) Regulations, 2015 about the composition of the board of directors as the number of independent directors is less than 50% of the actual strength of the BHEL’s Board.

As per the provisions of the SOP Circular issued by Stock Exchanges, BHEL is proposing to seek a waiver of fines levied by Stock Exchanges, the company said.

BHEL is a government company and the directors including independent directors are appointed by the Government of India.

BHEL is regularly taking up with the Government of India for the appointment of a requisite number of independent directors to ensure compliance with the aforesaid regulations, it added.

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The company had reported a standalone net loss of Rs 163 crore for the quarter ended December 31, 2023, and revenue from operations rose 4.5% to Rs 5,504 crore.

Earlier this month, the company received a Rs 5,500-crore order from Haryana Power Generation Corp Ltd. to set up a 1x800 MW Ultra Supercritical Expansion Unit at Deen Bandhu Chhotu Ram Thermal Power Plant (DCRTPP) in Yamuna Nagar.

The share touched a 52-week high of Rs 243.30 and a 52-week low of Rs 66.30 on 05 February 2024 and 27 February 2023, respectively.

Currently, the stock is trading 4.67 percent below its 52-week high and 249.85 percent above its 52-week low.

The stock price jumped 236 percent in the last 1-year.

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