BHEL OFS: Govt Sells 5% Stake for ₹3,500 Cr+; Retail & Employees Get Quota

New Delhi, February 13, 2026:  In a major development for Dalal Street, the Government of India has successfully sold a 5% stake in Bharat Heavy Electricals Limited (BHEL) through an Offer for Sale (OFS) mechanism. The transaction, executed on February 11 and 12, 2026, has infused thousands of crores into the exchequer and opened up a fresh opportunity for retail investors and employees.

According to a regulatory filing submitted to BSE and NSE by the Ministry of Heavy Industries, the President of India, acting through the ministry, sold a total of 17,42,09,815 equity shares, representing 5% of the total paid-up equity capital of the company.

The Big Numbers: OFS at a Glance

What This Means for You (Aam Aadmi & Investors)

1. Retail Investors Got a Piece
In a move that benefits the common man, the OFS had a dedicated window for Retail Investors and Eligible Employees on February 12, 2026 (T+1 day). This means individual investors got a chance to buy BHEL shares at the offer price, often at a discount to market price.

2. Government's Stake Reduces, But Control Remains
Post the sale, the Government of India now holds 58.17% in BHEL, down from 63.17%. The government remains the majority promoter, so there is no change in management. However, the increased public float improves liquidity and may attract more institutional investors.

3. Employees Got Special Treatment
A separate quota of 87,05,158 shares (0.25%) was reserved for eligible employees of the company. This is a huge boost for employee morale, allowing them to own a piece of their employer at preferential terms.

4. Market Signal: Is BHEL a Buy?
An OFS of this magnitude (over 5% stake) typically indicates that the government believes the stock is fairly valued. The fact that the oversubscription option was fully exercised suggests strong demand from institutional buyers. For long-term investors, this increased public holding often leads to better corporate governance and price discovery.

5. Proceeds to Fund National Schemes
The funds raised from this disinvestment (estimated over ₹3,500 crore, based on market price) will go to the government's coffers, helping fund infrastructure and social welfare schemes — indirectly benefiting every citizen.

Official Statement
The filing, signed by Swaminathan Nagarajan, Under Secretary, Ministry of Heavy Industries, confirmed that the sale was conducted in compliance with SEBI Takeover Regulations and the OFS Guidelines issued by stock exchanges.

Key Regulatory Details

• Before OFS: Govt held 2,19,96,50,402 shares (63.17%)

• After OFS: Govt holds 2,02,54,40,587 shares (58.17%)

• Mechanism: OFS through stock exchange window as per SEBI Master Circular dated December 30, 2024

Final Verdict: Good News for BHEL Shareholders
A successful OFS with strong participation from retail, employees, and institutions is a vote of confidence in BHEL's future. With the government still firmly in control but more shares now available for public trading, BHEL could see increased analyst coverage and liquidity in the coming months.