President of India to Sell Upto 17,41,03,168 Shares via Offer for Sale (OFS)

The President of India, through the Ministry of Heavy Industries, has initiated an Offer for Sale (OFS) for equity shares in Bharat Heavy Electricals Limited (BHEL), which commenced on February 11, 2026. The government is initially offloading a 3.00 per cent stake, with an additional 2.00 per cent greenshoe option, potentially totalling a 5.00 per cent divestment of 17,41,03,168 shares. The floor price for this sale has been set at Rs 254 per share, representing an 8 per cent discount to the previous closing price. This move is expected to generate approximately Rs 4,422 crore for the exchequer if the oversubscription option is fully exercised, bringing the Centre's total disinvestment proceeds for the current fiscal year to Rs 8,768 crore.

The OFS follows a structured bidding timeline, with the first day reserved for non-retail investors and the second day, February 12, open for retail investors and eligible employees. Non-retail participants must navigate a price priority basis, while retail investors—those bidding for shares valued at no more than Rs 2,00,000—have 10 per cent of the offer reserved for them. Additionally, a specific portion of 0.25 per cent of the equity is earmarked for employees, who can apply for shares worth up to Rs 5,00,000. Despite the 6 per cent intraday dip in share price following the announcement, the disinvestment highlights the government's strategy to capitalize on BHEL recent market performance.

Financially, BHEL is entering this disinvestment phase on the back of a robust third quarter for the 2026 fiscal year. The company reported a net profit of Rs 382 crore, a staggering 206 per cent increase compared to the Rs 125 crore earned in the same period the previous year. Revenue from operations also saw a healthy climb of 16 per cent, reaching Rs 8,473 crore. This growth is largely attributed to improved project execution and a strengthening order pipeline, providing a solid fundamental backdrop even as the market adjusts to the immediate pressure of the discounted share offer.

Adding to its operational momentum, BHEL recently secured a significant contract worth approximately Rs 2,800 crore from Bharat Coal Gasification and Chemicals Limited. This project involves the design, engineering and commissioning of a Syngas Purification Plant in Odisha, part of a larger coal-to-ammonium nitrate initiative. As a joint venture partner holding 49 per cent of BCGCL, BHEL’s role extends to 60 months of operations and maintenance following the initial 42-month construction phase. This major win underscores the company’s technical expertise in large-scale industrial infrastructure, even as its ownership structure undergoes this 5.00 per cent transition.

About the Company

Bharat Heavy Electricals Ltd (BHEL), a leading public sector enterprise under the Ministry of Heavy Industries and Public Enterprises, has been at the forefront of India's power sector for over six decades. With a strong track record in the design, engineering and manufacturing of a wide range of power generation equipment, BHEL has played a pivotal role in powering the nation's economic growth. BHEL Limited manufactures various power plant equipment.

The company has a market cap of over Rs 91,000 crore. The President of India’s portfolio owns 63.17 per cent and Life Insurance Corporation of India’s portfolio owns 6.21 per cent as of December 2025. The company’s order book stands at Rs 2,19,600 crore and the stock is up over 50 per cent from its 52-week low of Rs 176 per share.

Disclaimer: The article is for informational purposes only and not investment advice.