The government has initiated an Offer for Sale (OFS) to divest up to a 5% stake in Bharat Heavy Electricals Limited (BHEL). Initially, a 3% stake will be sold, with an option for an additional 2% to accommodate oversubscription. The floor price for the OFS stands at Rs 254 per share.
Secretary of the Department of Investment and Public Asset Management (DIPAM) revealed that the OFS in BHEL will open for Non-Retail investors first, followed by Retail investors. The government aims to disinvest 3% equity in BHEL, with an extra 2% as a green shoe option. This move represents over 10.44 crore shares for the 3% stake and around 6.96 crore shares for the additional 2% equity, totaling 17.41 crore shares.
The sale of shares will take place through a designated OFS window on both the BSE and NSE platforms. BHEL’s shares closed 0.53% higher at Rs 276.05 on the BSE, gaining Rs 1.45 during Tuesday’s trading session.
The proposed stake sale is part of the government’s disinvestment plan for the current financial year (2025-26). Despite falling short of the budgeted target of Rs 47,000 crore, the Revised Estimates (RE) have been revised to Rs 33,837 crore. The Union Budget 2026–27 has set a disinvestment target of Rs 80,000 crore, including the sale of shares in public sector undertakings and asset monetization.
BHEL has also secured a Letter of Acceptance (LoA) from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a project valued at approximately Rs 2,800 crore. This excludes customs duty and goods and services tax. The project, awarded by BCGCL, a joint venture between Coal India Limited and BHEL, pertains to the syngas purification plant for a coal-to-ammonium nitrate project in Odisha’s Jharsuguda district.
