BHEL OFS subscribed 2.3x on Day 1; govt to exercise green shoe option for 5% stake sale

The government’s offer for sale (OFS) in Bharat Heavy Electricals Limited (BHEL) has received an “enthusiastic response” from institutional investors, with the issue getting oversubscribed 2.3 times on the first day of bidding.

Against 9.4 crore shares on offer, bids were received for over 22 crore shares, prompting the government to exercise the green shoe option, the Department of Investment and Public Asset Management (DIPAM) updated on a social post.

“Offer for Sale in Bharat Heavy Electricals Limited (BHEL) received enthusiastic response and was over subscribed 2.3 times on the first day. Against 9.4 crore shares on offer, demand was received for more than 22 cr shares. Government has decided to exercise the green shoe option,” the DIPAM posted on X.

Retail investors and employees will be able to participate in the OFS on February 12, 2026, it added.

Stock ended 5.6% lower

Despite the strong subscription, shares of the state-run engineering major witnessed selling pressure on Wednesday, falling more than 6% in early trade after the OFS announcement. The stock eventually closed 5.58% lower at ₹260.65 on the BSE, taking the company’s market capitalisation to ₹90,760 crore.

During the trading session, BHEL shares declined as much as 6% to ₹259.30, while the company’s market capitalisation slipped to ₹90,930 crore. The stock opened at ₹262, down nearly 5% from its previous close. The counter also witnessed strong trading activity, with nearly 6 lakh shares changing hands compared to the two-week average volume of 5.44 lakh shares.

Last month, BHEL shares touched a 52-week high of ₹305.85 on January 7, 2026, rebounding nearly 74% from its 52-week low of ₹176 recorded on March 3, 2025. The stock has delivered a return of 31% over the past year and 18% in six months, but has declined more than 10% year-to-date.

Govt to offload 5% stake

As per an exchange filing, the Government of India, through the Ministry of Heavy Industries, is divesting up to a 5% stake in BHEL through a two-day OFS beginning February 11, 2026. The floor price has been set at ₹254 per share, representing a discount of nearly 8% to BHEL’s previous closing price of ₹276.05.

Under the base offer, the government plans to sell up to 10.44 crore equity shares, representing 3% of BHEL’s total issued and paid-up equity share capital. It has retained the option to sell an additional 2% stake, or 6.96 crore shares, in case of oversubscription, taking the total potential divestment to nearly 17.41 crore shares. Even after the proposed stake sale, the government will continue to hold a majority 58.17% stake in the company.

According to Sebi’s OFS guidelines, Day 1 bidding is reserved exclusively for non-retail investors, who may carry forward unallotted bids to Day 2. Retail investors and employees can participate on February 12, along with non-retail investors opting to revise or carry forward their bids.

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