BHEL OFS opens: PSU share cracks 6% — Check floor price, offer size, dates and other key details

BHEL OFS: Bharat Heavy Electricals Limited (BHEL) share price declined by 6% in intraday deals on Wednesday, February 11, after the offer for sale (OFS) by the government opened today.

BHEL, last evening, announced that the government will sell its stake in the PSU firm through the OFS, giving investors a chance to buy shares at a discount.

The PSU stock fell as much as 6% to its intra-day low of ₹259.30 on BSE after the OFS announcement.

"Government offers to disinvest 3% equity in the BHEL with an additional 2% as green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla posted on X. The PSU has set the floor price at ₹254 per share for the OFS.

Key things to know about BHEL OFS

1. Stake on offer: The government will sell a 3% stake in BHEL, representing over 10.44 crore equity shares, through the OFS route as part of its ongoing divestment programme.

2. Floor price fixed: The floor price for the OFS has been set at ₹254 per share, which is around an 8% discount to BHEL’s previous closing price on the NSE.

3. OFS dates: The offer will be conducted over two trading days—February 11 and February 12—following the standard OFS framework laid out by the stock exchanges.

4. Greenshoe option: The government has retained an oversubscription or greenshoe option to sell an additional 6.96 crore shares, equivalent to 2% equity, taking the total potential divestment to 5%.

5. Total issue size: At the base level, the 3% stake sale is estimated at about ₹2,650 crore. If the 2% greenshoe option is fully exercised, the total deal size could rise to around ₹4,422 crore.

6. Seller details: The seller in the OFS is the President of India, acting through the Ministry of Heavy Industries, which is the promoter of BHEL and currently holds a 63.17% stake.

7. Investor participation: Non-retail investors can bid on Wednesday, February 11, while retail investors will be allowed to place bids on Thursday, February 12.

8. Trading window: The OFS will be conducted during regular market hours on February 11, opening at 9:15 am and closing at 3:30 pm via a dedicated OFS window.

BHEL Q3 results 2026

Recently, BHEL posted a sharp improvement in its December-quarter performance, aided by stronger execution and operating leverage. The state-owned engineering major reported a net profit of ₹382 crore for Q3 ended December 2025, compared with ₹125 crore in the year-ago period, marking a 206% year-on-year increase.

Revenue from operations rose 16% YoY to ₹8,473 crore from ₹7,277 crore a year earlier, reflecting improved project execution and a healthier order pipeline. Including other income, total income for the quarter stood at ₹8,700 crore, up from ₹7,393 crore in the corresponding period last year.

On the cost side, total expenses increased to ₹8,188 crore from ₹7,224 crore in Q3 of the previous year. Expenses related to materials and services rose to ₹6,059 crore, in line with higher execution levels, while employee benefit expenses edged up marginally to ₹1,531 crore. Finance costs provided some relief, declining sequentially to ₹182 crore from ₹195 crore in the September quarter, supporting profitability.

BHEL order wins

Separately, on February 10, BHEL received a letter of acceptance from Bharat Coal Gasification and Chemicals Limited for a project valued at around ₹2,800 crore, excluding customs duty and goods and services tax. BCGCL is a joint venture between Coal India Limited, which holds a 51% stake, and BHEL, which owns the remaining 49%.

The order is for the Syngas Purification Plant under the LSTK-2 package for BCGCL’s coal-to-2,000-tonnes-per-day ammonium nitrate project at Lakhanpur in Jharsuguda district of Odisha. Under the contract, BHEL will handle design, engineering, equipment supply, civil works, erection, commissioning, and operations and maintenance services.

The project is expected to achieve preliminary acceptance, including commissioning and performance guarantee tests, within 42 months from the date of the LoA, with operations and maintenance services continuing for a further 60 months thereafter.

Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions.