Bhel stake sale oversubscribed on day 1 as institutional investors bid over Rs 5,600 crore

The government’s stake sale in Bharat Heavy Electricals Ltd (Bhel) was oversubscribed two times on the first day, with institutional investors placing bids worth over Rs 5,650 crore on Wednesday.Institutional investors bid for more than 22.07 crore shares at an indicative price of Rs 256.07 per share, against about 9.40 crore shares on offer under the base issue size.According to PTI, the base issue size saw two times subscription, with bids totalling around Rs 5,650 crore.The government is divesting a 3 per cent equity stake in Bhel, with an additional 2 per cent offered under a greenshoe option, at a floor price of Rs 254 per share in the two-day offer for sale (OFS). Retail investors will be able to place price bids on Thursday.The base issue size includes more than 10.44 crore shares, representing a 3 per cent stake, along with a greenshoe option to sell over 6.96 crore shares, or 2 per cent equity.The sale of up to 17.41 crore shares, or 5 per cent stake, is expected to fetch the government about Rs 4,422 crore. The government currently holds 63.17 per cent stake in Bhel.During Wednesday’s trade, Bhel shares touched a low of Rs 258.60 and later settled at Rs 260.65, down 5.58 per cent from the previous close.So far in the current financial year, the government has raised Rs 8,768 crore through disinvestment in public sector undertakings.