Bharat Heavy Electricals Limited (BHEL) shares declined over 5% in intra-day trading on Wednesday, February 11, following the announcement that the government will sell its stake in the PSU through an Offer for Sale (OFS), which opens today. The move presents investors with an opportunity to purchase shares at a discount.
The stock reached a low of ₹261.40 on BSE, down by as much as 5% after the OFS announcement. Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), confirmed the disinvestment via X (formerly Twitter), stating, “Government offers to disinvest 3% equity in BHEL with an additional 2% as green shoe option.” The government has set the floor price at ₹254 per share for the OFS.
Key Details of the OFS
- Stake on offer: The government will sell a 3% stake in BHEL, amounting to over 10.44 crore shares, as part of its ongoing divestment program.
- Floor price: Set at ₹254 per share, approximately 8% lower than BHEL’s previous close on NSE.
- Offer dates: The OFS will take place over two trading days—February 11 and February 12—per standard stock exchange procedures.
- Greenshoe option: The government has retained an oversubscription or greenshoe option to sell an additional 6.96 crore shares, representing an extra 2% stake, potentially increasing the total divestment to 5%.
- Total issue size: The base sale is valued at around ₹2,650 crore; if the greenshoe is fully exercised, the total could rise to approximately ₹4,422 crore.
- Seller details: The President of India, acting through the Ministry of Heavy Industries, is the seller. The ministry currently holds a 63.17% stake in BHEL.
- Investor participation: Non-retail investors can bid on February 11, while retail investors can participate on February 12.
- Trading window: The OFS will be conducted during market hours, from 9:15 am to 3:30 pm, via a dedicated OFS window.
BHEL Q3 Performance Highlights
BHEL reported a significant improvement in its December quarter results, driven by stronger project execution. The company posted a net profit of ₹382 crore for Q3 FY2026, up 206% from ₹125 crore in the same period last year. Revenue from operations increased 16% year-on-year to ₹8,473 crore, supported by a healthier order pipeline and better execution. Total income, including other income, stood at ₹8,700 crore, up from ₹7,393 crore.
Expenses rose to ₹8,188 crore from ₹7,224 crore, with materials and services costs increasing in line with higher activity levels. Employee expenses marginally increased to ₹1,531 crore. Finance costs decreased slightly to ₹182 crore from ₹195 crore, aiding profit margins.
New Order Win
On February 10, BHEL announced it received a letter of acceptance from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a project valued at around ₹2,800 crore, excluding taxes. BCGCL is a joint venture between Coal India Limited (51% stake) and BHEL (49%). The project involves the design, supply, civil works, erection, commissioning, and O&M of a Syngas Purification Plant for a coal-to-ammonium nitrate project in Odisha. The project aims to achieve preliminary acceptance within 42 months, with operations and maintenance continuing for five years thereafter.
The divestment and recent order wins highlight BHEL’s active role in both government disinvestment plans and strategic project execution.