Government Initiates Strategic Stake Sale in BHEL to Mobilize Funds
The Government of India has announced a significant divestment move, putting up for sale nearly 18.3 crore shares in the public sector engineering giant Bharat Heavy Electricals Limited (BHEL). This transaction represents approximately 5.3% of the company's total equity and is projected to generate around ₹4,650 crore for the national exchequer.
OFS Mechanism and Pricing Details
The stake disposal is being executed through the Offer for Sale (OFS) route, with the sale window officially opening today and scheduled to conclude on Thursday. According to official disclosures made by BHEL to the stock exchanges, the floor price for the OFS has been firmly established at ₹254 per share.
The base offer comprises a little over 10.4 crore shares of BHEL. However, the government has structured the sale with a greenshoe option, meaning that if investor demand exceeds expectations, an additional tranche of approximately 7 crore shares will be made available in the market.
Special Allocation for Employees and Investor Segments
In a notable provision, the offer document reveals that the government is also reserving an additional 87 lakh shares specifically for BHEL employees, providing them with a preferential opportunity to participate in the ownership of the company.
The OFS will follow a structured timeline for different investor categories:
- Institutional investors and other non-retail participants will have exclusive access to place their bids on Wednesday.
- Retail investors and BHEL employees will be able to enter the fray and submit their applications on Thursday.
This phased approach is designed to ensure orderly participation and efficient allocation of shares across diverse investor groups, supporting the government's broader disinvestment and capital mobilization objectives.
