Government to divest 3% stake in BHEL through OFS, option to sell additional 2%

Shares of Bharat Heavy Electricals Ltd ended 0.53 per cent higher at Rs 276.05 on the BSE, gaining Rs 1.45 during the session.

• Government launches OFS to divest up to 5 percent stake in BHEL
• OFS opens for non-retail investors Wednesday, retail investors Thursday
• BHEL wins Rs 2,800 crore project for Syngas Purification Plant in Odisha

Did our AI summary help?

The government has launched an Offer for Sale (OFS) to divest up to a 5% stake in state-run Bharat Heavy Electricals Limited (BHEL). Under the OFS, the government will sell an initial 3% stake, with an option to offload an additional 2% stake in case of oversubscription. The floor price for the OFS has been fixed at Rs 254 per share.

The government will open the Offer for Sale (OFS) in Bharat Heavy Electricals Limited (BHEL) on Wednesday for non-retail investors, with retail investors allowed to place bids on Thursday.  Secretary, Department of Investment and Public Asset Management (DIPAM), said in a post on X that the Centre is looking to divest a 3 per cent equity stake in BHEL, with an additional 2 per cent on offer through a green shoe option.

The OFS will be open on February 11 and 12, with retail investors permitted to place bids on a T+1 basis. The divestment is aimed at boosting market liquidity and widening public shareholding in the company.

Offer for Sale in Bharat Heavy Electricals Limited (BHEL) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday . Government offers to disinvest 3% equity in the BHEL with an additional 2% as green shoe option. pic.twitter.com/IO2PanQqX0

— Secretary, DIPAM (@SecyDIPAM) February 10, 2026

Officials said the OFS route is being used to facilitate efficient stake dilution while ensuring broader investor participation. With this move, the government aims to reduce its holding in BHEL in line with its broader disinvestment strategy.

BHEL is a major public sector undertaking under the Ministry of Heavy Industries and plays a key role in India’s power and infrastructure sectors.

Meanwhile, Bharat Heavy Electricals Limited (BHEL) on Tuesday said it has received a Letter of Acceptance (LoA) from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a project worth around ₹2,800 crore, excluding customs duty and goods and services tax.

BCGCL is a joint venture between Coal India Limited, which holds a 51 per cent stake, and BHEL, which owns the remaining 49 per cent. The order relates to the Syngas Purification Plant under the LSTK-2 package for BCGCL’s coal-to-2,000 tonnes-per-day ammonium nitrate project at Lakhanpur in Odisha’s Jharsuguda district.

As part of the contract, BHEL will handle design and engineering, supply of equipment, civil works, erection and commissioning, along with operations and maintenance services.

The project is scheduled to achieve preliminary acceptance — including commissioning and performance guarantee tests — within 42 months from the date of the LoA. The operations and maintenance phase will continue for another 60 months after preliminary acceptance.

Shares of Bharat Heavy Electricals Ltd ended 0.53 per cent higher at Rs 276.05 on the BSE, gaining Rs 1.45 during the session.