BHEL OFS subscribed 2.3x on Day 1, Stock falls over 5%; Govt to exercise green shoe option for 5% stake sale

The government’s offer for sale (OFS) in Bharat Heavy Electricals Limited (BHEL) received a strong response from institutional investors on the first day of bidding, with the issue getting oversubscribed 2.3 times. Against 9.4 crore shares on offer, bids were placed for more than 22 crore shares, prompting the government to exercise the green shoe option. Retail investors and employees will get the opportunity to participate in the stake sale on February 12, 2026, as the two-day divestment process continues to draw significant market attention.

Strong demand lifts subscription on Day 1

The OFS opened on February 11 with bidding limited to non-retail investors. Interest from big institutions was strong right from the start, with bids coming in for more than 22 crore shares against just 9.4 crore on offer. With demand far outstripping supply, the government chose to exercise the green shoe option, allowing it to sell an additional stake in the company.

Govt to offload up to 5% stake in BHEL

The Government of India, through the Ministry of Heavy Industries, is divesting an initial 3 per cent stake in BHEL, with an option to sell an additional 2 per cent under the green shoe mechanism in case of oversubscription.

The floor price has been fixed at Rs 254 per share, representing a discount of nearly 8 per cent to BHEL’s previous closing price. Under the base offer, the government plans to sell up to 10.44 crore equity shares. With the green shoe option, the total divestment could rise to nearly 17.41 crore shares, amounting to a 5 per cent stake sale.

Even after the transaction, the government will continue to hold a majority stake of over 58 per cent in the PSU engineering major.

Retail investors and employees to bid on February 12

As per Sebi’s OFS guidelines, Day 1 bidding is reserved for non-retail investors. Retail investors and eligible employees will be able to participate on Day 2, February 12.

Non-retail investors may also choose to carry forward unallotted bids or revise their offers during the second day, making the final subscription figure crucial for determining the extent of the green shoe option.

Share price performance

BHEL shares came under selling pressure on February 11, even as the OFS witnessed strong institutional demand. The stock closed at Rs 260.80, down Rs 15.30 or 5.54 per cent from its previous close.

BHEL Q3FY26 result highlights

State-owned power equipment maker Bharat Heavy Electricals Limited (BHEL) turned in a mixed December-quarter performance, delivering a sharp improvement in
profitability and margins, even as revenue growth lagged Zee Business estimates due to the impact of legacy low-margin projects and higher employee-related expenses.

For Q3FY26, BHEL posted a consolidated net profit of Rs 390 crore, marking a 191 per cent jump year-on-year from Rs 134 crore in the same period last year. The profit figure was marginally ahead of the Zee Business estimate of Rs 380 crore, aided by improved operational efficiency and higher other income.

Revenue from operations rose 16.4 per cent to Rs 8,473 crore, up from Rs 7,277 crore a year earlier. However, the topline fell short of the Zee Business estimate of Rs 9,035 crore, which had assumed 18–23 per cent growth led by stronger execution in the power and industrial segments, supported by the rollout of nearly 34 GW of new projects.