‎New Delhi, Feb 10 (.) The government will open an Offer for Sale (OFS) in state-owned engineering major Bharat Heavy Electricals Limited (BHEL) on Wednesday, with the issue initially available to non-retail investors, while retail investors can place their bids on Thursday.
‎Under the OFS, the government plans to sell a 3% equity stake in BHEL, with an option to offload an additional 2% through a green shoe option, taking the total potential disinvestment to 5%. The move is part of the Centre’s broader strategy to meet its disinvestment targets for the current financial year.
‎“The OFS will be conducted over two days, with non-retail investors participating on the first day and retail investors on the second,” an official familiar with the transaction said, adding that the green shoe option would be exercised depending on investor demand.
‎Market participants said the staggered bidding process is aimed at ensuring adequate participation from institutional investors while also providing retail shareholders an opportunity to participate in the divestment.
‎BHEL, a Maharatna public sector undertaking, is India’s largest power equipment manufacturer and plays a key role in thermal, hydro and renewable energy projects, as well as in defence and industrial manufacturing. The company has seen renewed investor interest in recent quarters on the back of improved order inflows, especially from the power sector, and efforts to streamline operations.
‎Analysts noted that the OFS comes at a time when PSU stocks have been in focus amid the government’s push for asset monetisation and capital market-driven disinvestment. “BHEL has a strong order book and is well positioned to benefit from the revival in power sector capital expenditure. The OFS could see healthy demand, particularly from long-term institutional investors,” said a market analyst.
‎The government currently holds a majority stake in BHEL, and the proposed sale will marginally reduce its shareholding while keeping management control firmly with the Centre. Proceeds from the stake sale will contribute to the government’s non-tax revenue and help fund public expenditure.
‎Retail investors bidding on Thursday will be able to apply at the cut-off price, as per OFS norms, while non-retail investors will be required to place price bids on the first day. The final extent of disinvestment will depend on the response to the base offer and the green shoe option.
‎With equity markets closely tracking government divestment plans, the BHEL OFS is expected to be one of the key capital market events this week.
. SKA .