BHEL OFS up to 5%: What Government exactly plans for strategic offloading for future disinvestments, Here are Pros and Cons

New Delhi: Government-owned Bharat Heavy Electricals Ltd (BHEL) shares have revived in the Monday’s trading session after major declines in the last four trading sessions as the government has recently concluded its offer for sale procedure last week. The Indian government has announced the planning to offload 174.2 million equity shares, representing almost 5% of the total equity of the company through offer for sale (OFS) through the stock exchange mechanism. According to the data, these shares for Rs 4,470 crore at an average price of Rs 259.59 per share.

The Maharatna PSU is critically positioned to restore the benefits for the renewable energy and power sectors of the country as mentioned in the Draft National Electricity Policy, 2026. The policy aims to substantial increase the per capita electricity consumption to 2,000 kWh by 2030 and 4,000 kWh by 2047 which ultimately needs a massive investment of Rs 50 lakh crore, by 2032 approximately for the power sector.

The Rs 47,000 crore target which is set for FY26 by the government aims to fund infrastructure and maintain fiscal health of revenue generation while improving efficiency in CPSEs.

In 2024-25, the government had also announced the OFS of General Insurance Corporation of India (GIC) with 3.38% of shares disinvested, aggregating to Rs 2,345.55 crores. The government’s shareholding post disinvestment of the company stood at 82.397%.

This criteria involves major fluctuations and legal hurdles in the recent volatile market with uneven opinions of the labour unions and lay-off apprehensions. Some structural issues like low profitability with high-operational costs and sometimes certainty of bureaucratic issues residing in the administrative progress which could highly hinders the government’s plan for the more flexible and resilient strategic procedures for the disinvestment plans.

However, some positive outcomes like offshore and onshore business growth with strong economic graphics trajectory which could invite more private players and organizations to invest in their domestic currencies, leading to enormous revenue generation.