Government Sells 5% Stake in BHEL via OFS | Floor Price ₹254

New Delhi, February 10, 2026: In a major disinvestment move, the Ministry of Heavy Industries announced today the sale of up to a 5% equity stake in the state-owned engineering giant Bharat Heavy Electricals Limited (BHEL) through the Offer for Sale (OFS) route.

The sale, conducted by the President of India acting through the ministry, aims to divest a 3% base offer size with an option to sell an additional 2% in case of strong demand.

Key Details of the OFS:

Offer Size: Up to 17.41 crore equity shares (5% of total paid-up capital).
- Base Offer: 10.44 crore shares (3%)
- Oversubscription Option: 6.96 crore shares (2%)
Floor Price: ₹254 per share.
Trade Dates:
- February 11, 2026 (T Day): Bidding for Non-Retail Investors only.
- February 12, 2026 (T+1 Day): Bidding for Retail Investors and Employees. Un-allotted bids from non-retail investors can also be carried forward to this day.
Employee Quota: 0.25% of equity (approx. 87 lakh shares) reserved for eligible BHEL employees, with a maximum investment limit of ₹5 lakh per employee.
Retail Quota: A minimum of 10% of the offer shares are reserved for retail investors (defined as those placing bids for a total value not exceeding ₹2 lakh).
Stock Exchanges: The OFS will take place on separate windows of the BSE and NSE, with NSE as the designated exchange.
Settlement: To be handled by NSE Clearing Limited.

Allocation & Key Conditions:

The allocation will be on a price priority basis. Retail investors will have the option to bid at the "Cut-Off Price," which will be determined after T-day's bidding.
A minimum of 25% of the offer shares are reserved for Mutual Funds and Insurance Companies.
The government retains the right to cancel the offer if there is insufficient demand from non-retail investors at or above the floor price on T-Day.
The notice explicitly states that promoters and promoter group members of BHEL are not allowed to participate in this OFS.

Brokerage & Legal Framework:

The sale will be executed through three seller's brokers: Citigroup Global Markets India Private Limited, ICICI Securities Limited, and Nuvama Wealth Management Limited.

The OFS is being undertaken under SEBI's comprehensive framework for companies with a market capitalization of ₹1,000 crore and above. The government clarified that this is not a public offer requiring a prospectus, but is being conducted strictly in accordance with SEBI's OFS guidelines.

The notice contains extensive disclosures for US and other international investors, stating that the shares are not being registered under US securities laws and can only be offered to Qualified Institutional Buyers (QIBs) in the US or offshore to non-US persons.

This disinvestment is part of the government's ongoing strategic efforts to meet its fiscal targets and increase public shareholding in Central Public Sector Enterprises (CPSEs). Market response to the OFS, given the floor price and BHEL's recent performance, will be closely watched.

For Investors: All bids must be placed through brokers during market hours (9:15 AM to 3:30 PM IST) on the respective days. Investors are advised to read the full OFS notice on the Ministry's website and consult with their financial advisors before participating.