Opportunity to buy BHEL shares at a discount:Govt to sell 5% stake at ₹254 apiece; retail investors can bid on Thursday

The central government has announced the sale of its stake in Bharat Heavy Electricals Limited (BHEL) through an Offer for Sale (OFS). Under this process, the government will divest a 3% stake, with an additional 2% stake available through the green shoe option. This takes the total potential stake sale to 5%. The OFS opened on February 11 and will remain open until February 12. The floor price has been set at ₹254 per share, which is about 8% lower than Tuesday’s closing price of ₹276. On Wednesday, BHEL shares were trading around 6% lower at ₹260. Retail investors can bid tomorrow Government retains majority stake The Government of India is currently the promoter of BHEL and holds a 63.17% stake in the company. Even after the proposed divestment, the government will continue to retain management control. The funds raised through this disinvestment will be used to support infrastructure and other development initiatives. Profit surges over 200% in the third quarter BHEL reported a strong performance in the December quarter, with net profit rising 206% year-on-year to ₹382 crore, compared to ₹125 crore in the same quarter last year. The company’s revenue also grew by 16% to ₹8,473 crore. The sharp increase in profit was driven by improved operational efficiency and better cost control. ₹2,800 crore order secured for Odisha project Even as the government moves ahead with its stake sale, BHEL has secured a major new order. The company has received a Letter of Acceptance (LoA) worth around ₹2,800 crore from Bharat Coal Gasification and Chemicals Limited. The order is for a Coal-to-Ammonium Nitrate plant in Jharsuguda district, Odisha. Under this project, BHEL will be responsible for design, engineering, supply, and maintenance. Knowledge Box: Key terms explained 1. What is an Offer for Sale (OFS)? An Offer for Sale (OFS) is a mechanism through which promoters—such as the Government of India—sell their shares directly to investors via the stock exchange. OFS issues are generally priced at a slight discount to the prevailing market price to attract wider participation. 2. What is the Green Shoe Option? The green shoe option allows the seller to offer additional shares if investor demand exceeds expectations. In BHEL’s case, the government has kept the option to sell an extra 2% stake in addition to the base 3%. 3. What is a Floor Price? The floor price is the minimum price at which shares can be sold under an OFS. Investors cannot place bids below this price. It is typically set lower than the current market price to make the offer more attractive.