Government to Sell Up to 5% in BHEL at ₹254 a Share via OFS

The Government of India has announced an offer for sale (OFS) to divest up to 5% equity in

at a floor price of ₹254 per share. The base offer comprises 3% stake, with an additional 2% available via a green shoe option if there is strong demand. The OFS will span two days, with participation open to non-retail investors on the first day and retail investors on the second. At the floor price, the sale could raise around ₹4,422 crore if the full 5% is sold. BHEL is a central PSU and one of India’s largest engineering and manufacturing companies in the power and industrial equipment space. What This Means * The OFS reflects continued government disinvestment efforts in public sector enterprises. * Pricing below recent market levels may encourage investor participation but could also signal valuation considerations. * A successful sale could broaden shareholding and potentially improve liquidity in BHEL stock. Key Things to Watch Going Forward 1. Subscription levels from institutional and retail investors. 2. Post-OFS share price reaction in secondary markets. 3. Impact on government’s overall disinvestment receipts for FY26. 4. Broader sentiment in PSU stocks following this and other divestments. Opinion The BHEL OFS is a continuation of the government’s strategy to unlock value in PSUs through market-based divestment, and fixing the floor price at ₹254 — slightly below recent market activity — could attract demand from long-term and value-oriented investors. While disinvestment receipts are an important fiscal lever, pricing strategy and demand sensitivity will determine investor response. A well-subscribed OFS can support broader PSU sentiment, but if uptake is weak, it may prompt questions about valuation perceptions for heavy engineering PSUs in the current market environment. Source: The Hindu No Recommendations