Govt to Sell up to 5% in BHEL at ₹254/Share; OFS Opens Wednesday

Why It Matters

The disinvestment provides a significant cash infusion for the fiscal budget while testing market appetite for legacy PSU equities, potentially reshaping the Indian public‑sector asset landscape.

Key Takeaways

• Government to sell up to 5% BHEL stake
• Floor price ₹254, 8% below market
• Potential proceeds ₹4,422 crore if fully subscribed
• Greenshoe option adds extra 2% equity

Pulse Analysis

India’s ongoing disinvestment drive has entered a new phase with the sale of a 5% stake in BHEL, one of the country’s largest engineering conglomerates. The move reflects the government’s strategy to monetize assets, reduce fiscal deficits, and encourage broader private ownership in traditionally state‑run enterprises. By pricing the offer at ₹254 per share—roughly eight percent under the market close—the authorities aim to attract a wide investor base while still preserving a premium for existing shareholders.

The OFS structure combines a 3% base issue with a 2% greenshoe option, allowing the government to increase the offering if demand exceeds expectations. Non‑retail investors can place orders on the opening day, followed by retail participation the next day, creating a staggered demand curve. Early market reaction showed BHEL’s stock edging higher, indicating confidence that the discount will be absorbed without destabilising the share price. The projected ₹4,422 crore proceeds will bolster the central treasury, complementing the ₹8,768 crore already raised from other PSU sales this fiscal year.

For investors, the BHEL offering signals a broader trend of selective privatization in high‑capital sectors such as power equipment and heavy engineering. Successful subscription could set a benchmark for future disinvestments, potentially prompting a re‑rating of other public‑sector stocks. Moreover, the infusion of private capital may drive operational efficiencies and innovation within BHEL, enhancing its competitiveness in both domestic and export markets. Stakeholders should monitor subscription levels, pricing dynamics, and subsequent policy cues to gauge the long‑term impact on India’s PSU reform agenda.

Govt to sell up to 5% in BHEL at ₹254/share; OFS opens Wednesday

If fully subscribed at the floor price, sale of 17.41 crore shares, or 5 % stake, would fetch the government ₹4, 422 crore · Updated · February 10, 2026 at 10:34 PM · New Delhi, February 10

The government holds 63.17 per cent in BHEL.

The government will sell up to a 5 per cent stake in Bharat Heavy Electricals Ltd (BHEL) via an offer‑for‑sale (OFS) beginning on Wednesday at a floor price of ₹254 a share.

“Government offers to disinvest 3 per cent equity in the BHEL with an additional 2 per cent as green‑shoe option,” Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on X.

The issue will open for non‑retail investors on Wednesday, while retail investors will get to put in price bids on Thursday.

If fully subscribed at the floor price, sale of 17.41 crore shares, or a 5 per cent stake, would fetch the government ₹4,422 crore.

The floor price of ₹254 a share is about 8 per cent below BHEL’s closing share price of ₹276.05 on the BSE.

The base issue size comprises over 10.44 crore shares, or a 3 per cent stake, in BHEL, plus a greenshoe option to sell over 6.96 crore shares or 2 per cent.

Shares of BHEL closed at ₹276.05, up 0.53 per cent over its previous close on Tuesday.

So far in the current fiscal year, the government has raised ₹8,768 crore through PSU disinvestments.

Published on February 10, 2026