BHEL's Shares Slip: Government's Disinvestment Plan in Action

Bharat Heavy Electricals Ltd shares dropped over 6% as the government opened its Offer For Sale (OFS). With institutional bids submitted, the OFS aims to sell a 3% stake with an additional 2% green shoe option, potentially bringing in Rs 4,422 crore if fully subscribed.

The shares of Bharat Heavy Electricals Ltd (BHEL) experienced a significant drop of over 6% in the market on Wednesday. This decline coincided with the opening of the government's Offer For Sale (OFS), a strategic move aimed at disinvesting a portion of the company's stake.

By midday, the issue was subscribed by 5.11%, with institutional investors submitting bids for over 48.08 lakh shares, each at an indicative price of Rs 254.53. These bids were placed against an offering of over 9.40 crore shares, presenting substantial interest from institutional stakeholders.

The government plans a two-day OFS with a vision to disinvest 3% of its equity in BHEL, alongside an additional 2% as a green shoe option. If the OFS reaches complete subscription at the floor price, the sale could generate Rs 4,422 crore for the government. As the fiscal year progresses, the government has accumulated Rs 8,768 crore through various PSU disinvestments.

(With inputs from agencies.)