BHEL Shares Fall 6% at Open as Government Sells Stake at 8% Discount

New Delhi: Shares of state-owned Bharat Heavy Electricals Limited (BHEL) fell sharply in early trade today, amid the government’s stake sale in the company. On the Bombay Stock Exchange (BSE), BHEL shares dropped nearly 6% to ₹259.30, after closing at ₹276.05 in the previous session and opening at ₹262.

The government is selling up to 5% of its 63.17% holding in BHEL through an Offer for Sale (OFS), which is expected to raise ₹4,422 crore. The OFS has been priced at ₹254 per share, representing an 8% discount to the previous close. Under the offer, the government will first sell a 3% stake, with an option to sell an additional 2% if the issue is oversubscribed. The OFS opened today for non-retail investors, while retail investors can bid starting Thursday.

BHEL’s financial performance has been strong. In the December quarter, the company’s net profit tripled to ₹382 crore from ₹125 crore in the same period last year. Revenue from operations rose 16% to ₹8,473 crore, up from ₹7,277 crore in the previous year’s quarter.

If fully subscribed, the government will sell 17.41 crore shares, including 10.44 crore shares in the base issue and 6.96 crore shares under the green-shoe option. With this, the government continues its disinvestment drive, having already raised ₹8,768 crore from PSU stake sales in the current financial year.