Kamal Ghorui
Shares of Bharat Heavy Electricals Ltd (BHEL) fell 6% in early trade on Wednesday, after the government announced an Offer for Sale (OFS) to reduce its stake in the company. On NSE, the Bhel stock was down 16 points or 5.80% to 260.10 at 11:20 am. On the Bombay Stock Exchange, the share price was 5.74% down to 260.2, sheding 15 points. The Centre plans to sell up to 5% of its holding and may raise about Rs 4,422 crore if the entire offer is subscribed at the floor price. The floor has been fixed at Rs 254 per share, which is 8% lower than Tuesday’s closing price of Rs 276.05. The sale will start with a 3% stake, however, the government can sell an additional 2% through a greenshoe option, in case the issue is oversubscribed. The base offer includes more than 10.44 crore shares, while the extra portion covers over 6.96 crore shares. In total, 17.41 crore shares could be sold. Non-retail investors can bid on Wednesday while retail investors will get their chance to bid on Thursday, according to ET. The government currently holds 63.17% in BHEL but may fall depending on how much of the OFS is taken up. With this transaction, the Centre’s total disinvestment proceeds from public sector undertakings in the current financial year stand at Rs 8,768 crore. The stake sale comes after BHEL posted a strong set of numbers for the quarter ended December 2025. The company reported a net profit of Rs 382 crore, compared with Rs 125 crore in the same period last year — a rise of 206% year on year. The improvement was driven by better execution and operating leverage. Revenue from operations increased 16% to Rs 8,473 crore from Rs 7,277 crore a year earlier, pointing to improved project work and a stronger order pipeline. Total income, including other income, rose to Rs 8,700 crore from Rs 7,393 crore in the year-ago quarter.
