New Delhi, February 11 Shares of Bharat Heavy Electricals Ltd (BHEL) fell by over 6 per cent on Wednesday, as the government's Offer For Sale (OFS) opened for subscription.
The issue was subscribed to 5.11 per cent by 11:50 am.
Institutional investors placed bids for over 48.08 lakh shares at an indicative price of Rs 254.53 per share, against an offer of over 9.40 crore shares.
Through a 2-day OFS, 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. Retail investors will be able to submit bids on Thursday.
If fully subscribed at the floor price, the sale of 17.41 crore shares, or 5 per cent stake, would generate Rs 4,422 crore for the government.
The base issue 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 government holds 63.17 per cent in BHEL.
BHEL shares touched a low of Rs 259.30 in morning trading, down 6 per cent from the previous close of Rs 276.05 on Tuesday.
BHEL shares were trading at Rs 260.75 in the pre-noon trading session on Wednesday. So far in the current fiscal year, the government has raised Rs 8,768 crore through the disinvestment of public sector undertakings (PSUs).
