New Delhi: The Government's 5 percent stake sale in BHEL closed with 1.34 times over-subscription after receiving enthusiastic response from retail and institutional investors.

"The second day of Bharat Heavy Electricals Limited OFS closed with enthusiastic response from retail investors. The issue was subscribed 1.34 times," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on X.

On Wednesday, institutional investors had placed bids for 22.07 crore BHEL shares at an indicative price of Rs 256.07 a share, totalling over Rs 5,650 crore.

The government is disinvesting 3 percent equity in BHEL with an additional 2 percent as a green-shoe option at a floor price of Rs 254 in the two-day offer for sale. Following the response of institutional buyers, the government exercised the green-shoe option.

The government will mobilise about Rs 4,400 crore at a floor price of Rs 254 per share by selling 5 percent 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 percent stake, in BHEL, plus a greenshoe option to sell over 6.96 crore shares or 2 percent.

The government holds 63.17 percent in BHEL.

Shares of BHEL closed at Rs 260.40, down 0.10 percent over the previous close.

So far this fiscal year, the government has raised Rs 8,768 crore through PSU disinvestments.

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