New Delhi, February 12 The government's 5 per cent stake sale in BHEL closed with 1.34 times over-subscription after receiving enthusiastic response from retail and institutional investors.
"The second day of the offer for sale (OFS) of Bharat Heavy Electricals Limited closed with enthusiastic response from retail investors. The issue was subscribed 1.34 times," said Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), on X.
On Wednesday, institutional investors had placed bids for 22.07 crore BHEL shares at an indicative price of Rs 256.07 per share, totaling over Rs 5,650 crore.
The government is divesting 3 per cent equity in BHEL with an additional 2 per cent as a green-shoe option at a floor price of Rs 254 in the two-day offer for sale.
Following the response from institutional buyers, the government exercised the green-shoe option.
The government will mobilize approximately Rs 4,400 crore at a floor price of Rs 254 per share by selling 5 per cent of its stake or 17.41 crore shares in BHEL through the two-day OFS.
The base issue size comprises over 10.44 crore shares, or 3 per cent stake, in BHEL, plus a greenshoe option to sell over 6.96 crore shares or 2 per cent.
The government holds 63.17 per cent in BHEL.
Shares of BHEL closed at Rs 260.40, down 0.10 per cent from the previous close.
So far this fiscal year, the government has raised Rs 8,768 crore through PSU divestments.
