Government's Strategic Stake Sale in BHEL Sees Strong Investor Interest

The government's stake sale in BHEL was over-subscribed on the first day, with institutional investors bidding over Rs 5,650 crore. The sale, involving 5% equity, aims to raise Rs 4,422 crore. Retail investors to place bids on Thursday, following strong institutional demand.

On its first day, the government's stake sale in BHEL drew remarkable investor interest, being over-subscribed twice over. Institutional investors bid around Rs 5,650 crore for more than 22.07 crore shares, surpassing the 9.40 crore shares initially on offer at an indicative price of Rs 256.07 per share.

The government is offloading 3% of its equity in BHEL with an additional 2% greenshoe option at a floor price of Rs 254 in a two-day offer for sale. The move is aimed at raising Rs 4,422 crore from the sale of approximately 17.41 crore shares, representing a 5% stake.

This stake sale comes as part of the government's broader disinvestment strategy, having already raised Rs 8,768 crore this fiscal year from PSU stake reductions. Retail investors will have their opportunity to bid on Thursday as shares settled at Rs 260.65, marking a 5.58% drop from the previous close.

(With inputs from agencies.)