Mumbai, Jan 4 (IANS): Shares of public sector undertaking BEML surged nearly 8 per cent on Monday after the government announced to sell 26 per cent stake in the company and invited expressions of interest (EoI) for the same.

Its shares opened 7.7 per cent higher to touch an intraday high of Rs 1,050 points.

They have, however, pared gains and around 11 a.m. were trading at Rs 1,007.00, higher by Rs 32.75 or 3.36 per cent from its previous close.

"Govt has issued the PIM/EOI for disinvestment of 26 per cent equity share capital of BEML Ltd along with transfer of management control. Disinvestment will be through a two stage competitive bidding process," said a tweet by the Twitter handle of the Secretary, Department of Investment and Public Asset Management on Sunday.

As per the Preliminary Information Memorandum (PIM), non-operational or surplus land assets will be hived-off and excluded from the process of strategic disinvestment.

BEML is a 'Miniratna' Category-1 Public Sector Undertaking, under the administrative control of the Ministry of Defence. The government currently holds 54.03 per cent stake in it.