Government to sell 5% stake in BHEL via OFS at Rs 254; sale could fetch Rs 4,422 crore

The government will sell up to 5 per cent stake in Bharat Heavy Electricals Ltd (BHEL) through an offer for sale (OFS) starting Wednesday, with a floor price set at Rs 254 per share, around 8 per cent below BHEL’s Tuesday closing price of Rs 276.05 on the BSE.

Disinvestment details

According to Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), the government plans to sell 3 per cent of equity through the base issue, with an additional 2 per cent available via a green shoe option. Non-retail investors can participate from Wednesday, while retail investors will have the opportunity to submit price bids on Thursday.

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If fully subscribed at the floor price, the sale of 17.41 crore shares, representing a 5 per cent stake, would fetch the government Rs 4,422 crore. The government currently holds 63.17 per cent in BHEL.

BHEL secures major order

In a separate development, BHEL received a letter of acceptance (LoA) from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a project valued at approximately Rs 2,800 crore, excluding customs duty and goods and services tax. BCGCL is a joint venture between Coal India Limited, which holds a 51 per cent stake, and BHEL, which owns 49 per cent.

The order covers the Syngas Purification Plant under the LSTK-2 package for BCGCL’s coal-to-2,000-tonnes-per-day ammonium nitrate project at Lakhanpur in Odisha’s Jharsuguda district. Under the contract, BHEL will provide design, engineering, supply of equipment, civil works, erection, commissioning, as well as operations and maintenance services. Preliminary acceptance, including commissioning and performance guarantee tests, is scheduled within 42 months from the LoA, with O&M services extending for a further 60 months.

Disinvestment trend

So far in the current fiscal year, the government has raised Rs 8,768 crore through PSU disinvestments, continuing its push to unlock value from public sector enterprises.

Share price performance

BHEL shares closed at Rs 276.05 on Tuesday, up 0.53 per cent from the 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.