Is the Government Divesting Up to 5% Stake in BHEL?
Synopsis
The government is set to divest a significant portion of its stake in BHEL, starting an Offer for Sale that could reshape the financial landscape. Investors should keep an eye on this move as it opens up new opportunities in the stock market.
Key Takeaways
The government is divesting a total of up to 5% in BHEL.
Initial offers start with a 3% stake, with a green shoe option for 2%.
The floor price for shares is set at Rs 254.
This move is part of the government's disinvestment strategy for the fiscal year.
BHEL has secured a significant project from BCGCL worth Rs 2,800 crore.
New Delhi, Feb 10 (NationPress) On Tuesday, the government revealed that it has initiated an Offer for Sale (OFS) to divest up to a 5 per cent stake in the prominent engineering company Bharat Heavy Electricals Limited (BHEL).
The government plans to sell an initial 3 per cent stake, with the option to dispose of an additional 2 per cent stake to address any oversubscription of bids. The floor price for this OFS has been set at Rs 254 per share.
“The Offer for Sale in Bharat Heavy Electricals Limited (BHEL) will commence tomorrow for Non-Retail investors, while Retail investors can participate on Thursday. The government is offering to disinvest 3 per cent equity in BHEL, with an extra 2 per cent available as a green shoe option,” stated the Secretary of the Department of Investment and Public Asset Management (DIPAM) in a post on X.
The 3 per cent government stake equates to over 10.44 crore shares in BHEL. The additional 2 per cent equity would amount to approximately 6.96 crore shares, bringing the total to 17.41 crore shares.
These shares will be offered through a dedicated OFS window on the BSE and NSE.
On the trading floor, shares of Bharat Heavy Electricals Ltd closed 0.53 per cent higher at Rs 276.05 on the BSE, gaining Rs 1.45 during Tuesday’s session.
This planned stake sale is part of the Centre’s disinvestment strategy for the current financial year (2025-26). However, the government has not met its budgeted target of Rs 47,000 crore, leading to a revised estimate of Rs 33,837 crore.
The Union Budget 2026–27 has set a disinvestment goal of Rs 80,000 crore under miscellaneous capital receipts, which includes selling shares in public sector undertakings and asset monetization.
Additionally, BHEL has secured a Letter of Acceptance (LoA) from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a project valued at approximately Rs 2,800 crore, excluding customs duties and GST.
BCGCL is a joint venture where Coal India Limited holds a 51 per cent stake, while BHEL possesses the remaining 49 per cent. This order pertains to a syngas purification plant under the LSTK-2 package for BCGCL’s coal-to-2,000-tonnes-per-day ammonium nitrate project located in Lakhanpur, Odisha’s Jharsuguda district.
Point of View
The government's divestment of BHEL is a strategic financial maneuver aimed at meeting revised budget targets. While some may view this as a necessary step for fiscal health, it also raises questions about the long-term implications for India’s public sector undertakings. The focus should remain on transparency and ensuring that public interests are safeguarded during this process.
NationPress
6 May 2026
Frequently Asked Questions
What is the Offer for Sale (OFS) for BHEL?
The Offer for Sale (OFS) is a mechanism through which the government intends to sell up to a 5% stake in Bharat Heavy Electricals Limited (BHEL), beginning with a 3% stake and an option for an additional 2%.
When can investors participate in the OFS?
Non-Retail investors can bid starting tomorrow, while Retail investors can participate on Thursday.
What is the floor price for the BHEL shares?
The floor price for the BHEL Offer for Sale has been set at Rs 254 per share.
How many total shares are involved in this divestment?
The total shares involved include 17.41 crore shares, with 10.44 crore shares for the initial 3% stake and an additional 6.96 crore shares for the green shoe option.
What is the significance of this divestment?
This divestment is part of the government's broader disinvestment strategy, aimed at meeting fiscal targets and optimizing public sector assets.
