Government sells 3% stake in BHEL through OFS and sets floor price at Rs 254 per share

The government will sell 3% stake, representing over 10.44 crore shares in Bharat Heavy Electricals Limited (BHEL), through an offer for sale (OFS). The PSU has fixed the floor price at Rs 254 per share.The government has also retained an over-subscription option to sell an additional 6.96 crore shares, equivalent to 2% equity, which would take the total potential disinvestment to 17.41 crore shares, or 5% of the company’s equity, if fully exercised.

The shares will be sold through a separate designated OFS counter on the BSE and NSE.

The OFS takes place during trading hours on Wednesday, starting at 9:15 AM and closing at 3:30 PM.

At the given floor price, the government will raise Rs 2,653 crore on disinvestment of 3% shares, while the amount will rise to Rs 4,422 crore if the over-subscription option is exercised.

BHEL shares ended today at Rs 275.90 million, gaining Rs 1.25 or 0.46% from the previous close.

BHEL reported a sharp turnaround in performance for the December quarter, with net profit more than tripling on higher execution and operating leverage. The state-owned engineering firm posted a net profit of Rs 382 crore for the third quarter ended December 2025, compared to Rs 125 crore in the same period last year, marking an increase of 206% year-on-year. Revenue from operations rose 16% year-on-year to Rs 8,473 crore from Rs 7,277 crore a year earlier, driven by improved project execution and a stronger order pipeline. Total income for the quarter, including other income, stood at Rs 8,700 crore, up from Rs 7,393 crore in the same period a year ago.

On the cost side, total expenses rose to Rs 8,188 crore from Rs 7,224 crore in the same quarter last year. The cost of materials and services rose to Rs 6,059 crore, while personnel costs rose marginally to Rs 1,531 crore. Financing costs declined sequentially to Rs 182 crore from Rs 195 crore in the September quarter, providing additional support to profitability.