BHEL OFS Opens: PSU Stock Falls 5% After Government Announces 3% Stake Sale

Bharat Heavy Electricals Limited shares fell over 5% in intra-day trade on February 11 after the government announced an offer for sale to divest its stake in the PSU.

The stock declined as much as 5% to ₹261.40 on the BSE following the announcement.

"Government offers to disinvest 3% equity in the BHEL with an additional 2% as green shoe option," Department of Investment and Public Asset Management Secretary Arunish Chawla posted on X.

The floor price for the OFS has been fixed at ₹254 per share, which is about an 8% discount to the previous closing price on the NSE.

Key details of the OFS

The government will sell a 3% stake in BHEL, representing over 10.44 crore equity shares, through the OFS route as part of its divestment programme.

The offer will open on February 11 and close on February 12, in line with the stock exchange framework for OFS issues.

The government has retained a greenshoe option to sell an additional 6.96 crore shares, equivalent to 2% equity. If exercised fully, the total divestment could reach 5%.

At the base size of 3%, the issue is estimated at around ₹2,650 crore. With the greenshoe option, the total deal size could rise to about ₹4,422 crore.

The seller in the OFS is the President of India, acting through the Ministry of Heavy Industries. The government currently holds a 63.17% stake in BHEL.

Non retail investors can bid on February 11, while retail investors can place bids on February 12.

The OFS will be conducted during regular market hours from 9:15 am to 3:30 pm through a separate OFS window.

BHEL Q3 Results

BHEL reported a net profit of ₹382 crore for the quarter ended December 2025, compared with ₹125 crore in the year ago period. This marks a 206% year on year rise.

Revenue from operations increased 16% year on year to ₹8,473 crore from ₹7,277 crore. Total income stood at ₹8,700 crore, up from ₹7,393 crore in the corresponding quarter last year.

Total expenses rose to ₹8,188 crore from ₹7,224 crore. Material and services costs increased to ₹6,059 crore. Employee benefit expenses rose marginally to ₹1,531 crore. Finance costs declined sequentially to ₹182 crore from ₹195 crore in the September quarter.

Order Win

On February 10, BHEL received a letter of acceptance from Bharat Coal Gasification and Chemicals Limited for a project valued at around ₹2,800 crore, excluding customs duty and goods and services tax.

BCGCL is a joint venture between Coal India Limited, which holds 51% stake, and BHEL, which holds 49%.

The order is for 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.

BHEL will undertake design, engineering, supply of equipment, civil works, erection, commissioning, and operations and maintenance.

The project is expected to achieve preliminary acceptance within 42 months from the date of the LoA. Operations and maintenance services will continue for 60 months thereafter.