New Delhi, February 11 The government's sale of shares in BHEL was oversubscribed by more than twice the amount on Wednesday, with institutional investors placing bids worth over ₹5,650 crore on the first day of the sale.
The government has decided to exercise the green shoe option in the Offer for Sale (OFS), and has put the entire 5 per cent stake on the block, according to Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), on X.
"The Offer for Sale in Bharat Heavy Electricals Limited (BHEL) received an enthusiastic response and was oversubscribed 2.3 times on the first day," Chawla said. Retail investors will have the opportunity to bid in the OFS on Thursday.
The government will raise ₹4,422 crore at a floor price of ₹254 per share by selling 5 per cent of its stake in BHEL.
On Wednesday, institutional investors placed bids for over 22.07 crore shares at an indicative price of ₹256.07 per share, compared to over 9.40 crore shares on offer.
The government is selling 3 per cent equity in BHEL, with an additional 2 per cent as a green shoe option, at a floor price of ₹254, in a two-day offer for sale. Retail investors will be able to place a price bid on Thursday.
The base issue size comprises over 10.44 crore shares, or 3 per cent stake, in BHEL, plus a green shoe option to sell over 6.96 crore shares or 2 per cent.
The sale of a total of 17.41 crore shares, or 5 per cent stake, would fetch the government ₹4,422 crore. The government holds 63.17 per cent in BHEL.
Shares of BHEL touched a low of ₹258.60 in Wednesday's trading. The scrip closed at ₹260.65, down 5.58 per cent from the previous close.
So far this fiscal year, the government has raised ₹8,768 crore through disinvestment of PSUs.
