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Govt Launches 5% BHEL Stake Sale via OFS at ₹254 Floor Price

The government has launched an Offer for Sale to divest up to a 5% stake in Bharat Heavy Electricals Limited. The sale consists of an initial 3% stake with an option to offload an additional 2% if oversubscribed, with a floor price of ₹254 per share. This move is part of the Centre's disinvestment programme for the financial year, though it has revised its target downward from the initial budget. Concurrently, BHEL has secured a major project worth around ₹2,800 crore for a syngas purification plant in Odisha.

Key Points: BHEL OFS: Govt Sells 5% Stake, Floor Price ₹254

  • 3% initial stake sale with 2% green shoe option
  • Floor price fixed at ₹254 per share
  • Part of FY26 disinvestment programme
  • BHEL also secures ₹2,800 crore project order
2 min read

Govt launches offer for sale to divest up to 5 per cent stake in BHEL

Government launches Offer for Sale to divest up to 5% stake in BHEL. Floor price set at ₹254 per share. Details on sale structure and disinvestment targets.

"Offer for Sale in Bharat Heavy Electricals Limited (BHEL) opens tomorrow for Non-Retail investors. - Secretary, DIPAM"

New Delhi, Feb 10

The government announced on Tuesday that it has launched an Offer for Sale to divest up to a 5 per cent stake in engineering giant Bharat Heavy Electricals Limited.

The government will sell an initial 3 per cent stake, with an option to offload an additional 2 per cent stake to accommodate any oversubscription of bids. The floor price for the OFS has been fixed at Rs 254 per share.

"Offer for Sale in Bharat Heavy Electricals Limited (BHEL) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday. Government offers to disinvest 3 per cent equity in BHEL with an additional 2 per cent as green shoe option," Secretary, Department of Investment and Public Asset Management (DIPAM), wrote in a post on X.

The 3 per cent government stake represents over 10.44 crore shares in BHEL. The additional 2 per cent equity would work out to around 6.96 crore shares, taking the total number to 17.41 crore shares.

The shares will be sold through a separate, designated OFS window on the BSE and NSE.

Shares of Bharat Heavy Electricals Ltd ended 0.53 per cent higher at Rs 276.05 on the BSE, gaining Rs 1.45 during the trading session on Tuesday.

The proposed stake sale is part of the Centre's disinvestment programme for the current financial year (2025-26). However, the government fell short of its budgeted target of Rs 47,000 crore, prompting a downward revision to Rs 33,837 crore in the Revised Estimates (RE).

The Union Budget 2026-27 has set a disinvestment target of Rs 80,000 crore under miscellaneous capital receipts, which includes the sale of shares in public sector undertakings and asset monetisation.

Meanwhile, BHEL has also received a Letter of Acceptance (LoA) from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a project worth around Rs 2,800 crore, excluding customs duty and goods and services tax.

BCGCL is a joint venture between Coal India Limited, which holds a 51 per cent stake, and BHEL, which owns the remaining 49 per cent. The order relates to the syngas purification plant under the LSTK-2 package for BCGCL's coal-to-2,000-tonnes-per-day ammonium nitrate project at Lakhanpur in Odisha's Jharsuguda district.

- IANS

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Reader Comments

P
Priya S
As a retail investor, I'm glad we get a separate day to bid. Makes it fair. Will definitely apply for some shares. BHEL has that big new order too, so future looks stable. 👍
A
Arjun K
They keep missing their disinvestment targets year after year. Revised from 47k to 34k crore? Now next year's target is 80k? Seems more like wishful thinking than a solid plan. We need better execution.
S
Sarah B
Interesting to see this alongside the news of the Rs 2,800 crore project. Shows the company is still winning work. The JV with Coal India is a smart play into coal gasification.
K
Karthik V
Selling at 254 when the market price is 276? That's a decent discount for investors. Hope the disinvestment money is used wisely and not just to fill budget gaps. Our PSUs are national pride, handle with care.
M
Meera T
My father worked at BHEL. It's an engineering marvel of India. A little public participation is fine, but the government must keep majority control. It's crucial for our energy and defence sectors.

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