The Government of India has announced an Offer for Sale (OFS) to sell up to 5 per cent of its stake in Bharat Heavy Electricals Ltd (BHEL). This move is part of the government’s ongoing plan to reduce holdings in public sector companies and raise funds.
Under the offer, the government will first sell 3 per cent, with an option to sell another 2 per cent if demand is strong. The floor price is set at ₹254 per share, about 8 per cent lower than BHEL’s previous closing price. If fully sold, the divestment could generate around ₹4,422 crore.
Bids for institutional investors opened first, followed by retail investors. The government currently holds a 63 per cent majority stake in BHEL. This OFS is aimed at increasing public shareholding and market liquidity while helping the government meet its fiscal targets.
After the announcement, BHEL shares fell about 5–6 per cent in early trading, reflecting the market’s reaction to the discounted price and additional shares being offered.
BHEL is a key company in India’s power and infrastructure sectors, supplying electrical equipment and engineering services. Investors are closely watching the OFS as it affects both the stock price and overall market activity.
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