BHEL Stake Sale Oversubscribed: A Boost for PSU Disinvestment

The Indian government's sale of its 5% stake in Bharat Heavy Electricals Limited (BHEL) was oversubscribed by institutional investors, raising over Rs 4,422 crore at Rs 254 per share. Retail investors will bid next, and the government has raised Rs 8,768 crore through PSU disinvestments this fiscal year.

The government's decision to divest a 5% stake in Bharat Heavy Electricals Limited (BHEL) garnered strong interest, with institutional investors bidding over Rs 5,650 crore on the first day. This oversubscription prompted the exercise of the green shoe option.

Despite a volatile trading session, with BHEL shares closing at Rs 260.65, down 5.58% from the previous close, the stake sale remains on track to raise Rs 4,422 crore for the government. The floor price set for the offering is Rs 254 per share.

The disinvestment, part of a broader strategy, has raised Rs 8,768 crore this fiscal year from PSU sales. Retail investors are now gearing up to place their bids, marking the final phase of this two-day Offer for Sale.