Shares of BEML Land Assets fell 5% on Wednesday as parent company BEML listed its demerged non-core business entity on the exchange today. The stock soared more than 4% intraday on Tuesday, a day before it went public.

The stock debuted on April 19 at Rs 290.20 on the BSE and was simultaneously listed at Rs 287 on the NSE. BEML Land Assets is widely expected to list around Rs 300 per share.

Shares of BEML Land Assets were down 5% at Rs 275.70 on the BSE at 10:44 am, while shares of BEML were down 0.6% at Rs 1,239.50.

BEML will demerge its non-core business into BEML Land Assets Ltd in October 2022. According to reports, the main assets of the demerged entity will be about 550 acres of prime land in Bengaluru and Mysore.

The demerger aims to clarify the value of its core business, making heavy equipment such as bulldozers, defence equipment, and fixed assets, which would clear the way for privatisation.

Under the demerger proposal, BEML shareholders will receive shares in BEML Land Assets Ltd on a 1:1 basis.

The divestment process is expected to begin after the demerged entity goes public. The government seeks a strategic divestment of 26% following the spin-off process of BEML’s non-core assets.