- Shares of Bharat Heavy Electricals Ltd fell over 5% after a government stake sale announcement
- The government will divest 3% stake in BHEL through an offer for sale starting February 11
- The floor price for the OFS is set at Rs 254 per share, about 8% below the previous close
Shares of Bharat Heavy Electricals Ltd (BHEL) shares slipped over 5% on Wednesday, February 11, after the company disclosed that the government would be offloading part of its stake through an offer for sale (OFS) that opens today.
The move provides investors an opportunity to purchase the stock at a discounted price. The PSU has set the floor price at Rs 254 per share for the OFS.
Of the 19 analysts tracking this stock, eight have a 'buy' call, two have a 'hold' call, and nine have a 'sell' rating, with an average downside potential of 1.8%.
Photo Credit: BHEL Website
The announcement was made by Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla in a post on X.
Offer for Sale in Bharat Heavy Electricals Limited (BHEL) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday . Government offers to disinvest 3% equity in the BHEL with an additional 2% as green shoe option. pic.twitter.com/IO2PanQqX0
— Secretary, DIPAM (@SecyDIPAM) February 10, 2026
Key Details On OFS
The government is set to divest a 3% stake in BHEL—amounting to over 10.44 crore equity shares—through an offer for sale (OFS) as part of its ongoing disinvestment plan. The floor price for the issue has been set at Rs 254 per share, offering investors an approximate 8% discount to BHEL's previous close on the NSE. The OFS will take place over two trading sessions on February 11 and 12, in line with the standard framework prescribed by the stock exchanges.
The government has also kept a greenshoe option that allows it to sell an additional 6.96 crore shares, or 2% equity, which could raise the total divestment to 5%. At the base level, the 3% stake sale is expected to fetch around Rs 2,650 crore, while exercising the full greenshoe option could increase the issue size to roughly Rs 4,422 crore.
The seller in this OFS is the President of India, acting through the Ministry of Heavy Industries, which currently holds a 63.17% promoter stake in BHEL. Bidding for non‑retail investors will open on Wednesday, February 11, while retail investors can participate on Thursday, February 12. The offer will run via the designated OFS window during regular market hours, from 9:15 am to 3:30 pm.
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