New Delhi: Bharat Heavy Electrical Limited (BHEL) has moved higher by 10% to Rs 146 in intraday trade on the back of heavy volumes after Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe on Thursday laid foundation stone for India’s first bullet train between Ahmedabad and Mumbai.
The stock settled the trade 3.6% higher at Rs 137 on the BSE.
On June 29, 2017 the state-owned BHEL had entered into a technology collaboration agreement with Kawasaki Heavy Industries, (KHI), Japan for the manufacture of stainless steel coaches for metros.
KHI is a manufacturer of heavy equipment and its rolling stock company has supplied EMU trainsets to various countries like the US, Singapore, Taiwan and Hong Kong, alongside Japan, the statement said. KHI is also the manufacturer and supplier of the Shinkansen High Speed Bullet Trains, proposed to be introduced in India on the Mumbai-Ahmedabad High Speed Rail Corridor. The pact will enable BHEL to produce stainless steel coaches indigenously, it added.
The Technology Collaboration Agreement covers establishing a state-of-the-art design, engineering and manufacturing facilities at BHEL, India using Japanese technology, a company statement said.
The pact will also entitle BHEL for all technology advances and upgrades. BHEL has been supplying the Indian Railways both electric and diesel locomotives, EMUs, and propulsion system sets and drives for the same. Kolkata Metro, the first metro project in India, is equipped with BHEL made propulsion system.
Meanwhile, in past four trading sessions, the stock rallied 14% after the BHEL has fixed September 30, 2017 as the record date for the purpose of issuance of bonus shares of the company in the ratio of 1 (One) new equity bonus share Rs 2 each for every 2 (Two) existing equity shares of Rs 2 each.