Govt's BHEL share sale subscribed more than 2 times, institutions put in over Rs 5,600 crore bids
New Delhi: The Government's stake sale in Bharat Heavy Electricals Limited (BHEL) was subscribed more than two times on Wednesday, with institutional investors placing bids worth over Rs 5,650 crore on the first day of the sale.
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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, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on X.
"Offer for Sale in Bharat Heavy Electricals Limited (BHEL) received enthusiastic response and was over-subscribed 2.3 times on the first day," Chawla said. Retail investors will get to bid in the OFS on Thursday.
The Government will mobilise Rs 4,422 crore at a floor price of Rs 254 per share by selling 5 percent of its stake in BHEL.
On Wednesday, institutional investors put in bids for over 22.07 crore shares at an indicative price of Rs 256.07 a share, as against over 9.40 crore shares on offer.
The government is disinvesting 3 percent 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. Retail investors will be able to place a price bid on Thursday.
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 sale of total 17.41 crore shares, or 5 percent stake, would fetch the government Rs 4,422 crore. The government holds 63.17 percent in BHEL.
Shares of BHEL touched a low of Rs 258.60 in Wednesday's trade. The scrip settled at Rs 260.65, down 5.58 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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