BHEL shares drop 6% as govt launches OFS to sell up to 5% stake

Shares of Bharat Heavy Electricals Limited (BHEL) fell over 6% in early trade on Wednesday after the government launched an offer for sale (OFS) to divest up to a 5% stake in the state-owned company.

As per an exchange filing, the government will offload an initial 3% stake, with an option to sell an additional 2% in case of oversubscription. The floor price for the OFS has been fixed at ₹254 per share, a discount of nearly 8% to BHEL’s Tuesday closing price.

Following the development, BHEL shares declined as much as 6% to ₹259.30, while the company’s market capitalisation slipped to ₹90,930 crore on the BSE. The stock opened at ₹262, down about 5% from the previous close of ₹276.05.

The counter witnessed strong trading activity, with nearly 6 lakh shares changing hands, compared with 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 sell up to 5% stake at ₹254

In a filing, BHEL said the Government of India, through the Ministry of Heavy Industries, will divest up to a 5% stake through a two-day OFS beginning February 11, 2026, at a floor price of ₹254 per share. Even after the proposed divestment, the government will retain a 58.17% stake in the company.

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. An additional 2% stake, or 6.96 crore shares, may be sold through the oversubscription option, taking the total potential divestment to nearly 17.41 crore shares.

As per the OFS structure, bidding on Day 1 will be open exclusively to non-retail investors, who may also carry forward unallotted bids to Day 2. Retail investors and employees will be allowed to participate on February 12, along with non-retail investors opting to revise or carry forward bids, in line with Sebi’s OFS guidelines.

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