New Delhi: The Government of India will sell up to 5 per cent stake in Bharat Heavy Electricals Ltd (BHEL) through an Offer for Sale (OFS) starting Wednesday, with a floor price set at ₹254 per share, according to the Department of Investment and Public Asset Management (DIPAM).
OFS Structure and Timeline
As per DIPAM Secretary Arunish Chawla, the government will disinvest 3 per cent equity in BHEL, with an additional 2 per cent offered through a greenshoe option.
The OFS will open for non-retail investors on Wednesday, while retail investors can place bids on Thursday.
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Potential Proceeds and Valuation
If the issue is fully subscribed at the floor price, the sale of 17.41 crore shares—representing a 5 per cent stake—could fetch the government around ₹4,422 crore.
The floor price of ₹254 per share is nearly 8 per cent lower than BHEL’s closing price of ₹276.05 on the BSE on Tuesday.
The base issue includes 10.44 crore shares (3%), while the greenshoe option allows the sale of an additional 6.96 crore shares (2%).
Government Holding and Market Reaction
Post the OFS, the government’s stake in BHEL will reduce from the current 63.17 per cent, subject to full subscription.
Shares of BHEL closed at ₹276.05, up 0.53 per cent, ahead of the OFS announcement.
PSU Disinvestment Update
With this proposed stake sale, the government has raised ₹8,768 crore so far in the current financial year through PSU disinvestments, continuing its broader asset monetisation strategy.
About BHEL
Bharat Heavy Electricals Ltd (BHEL) is a Maharatna public sector undertaking and one of India’s largest engineering and manufacturing companies. It plays a key role in the power, defence, railways, oil and gas, and renewable energy sectors, contributing significantly to the country’s infrastructure and industrial development.
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