Athira Sethu
Kochi, 11 Feb 2026
BHEL’s OFS (Offer for Sale) kicked off on Wednesday. Retail investors will be able to apply for the OFS from tomorrow. The government is holding a 67.72% stake in BHEL, out of which it has decided to sell a 5% share of this portion to investors through the book building route in the domestic stock exchanges. The sale is expected to generate more than Rs 4,500 crore at the current market price per share, as approved in a proposal by the Cabinet Committee on Economic Affairs.
To incentivize participation, a discount of 5% on the price of the shares being sold will be given to retail investors. In addition, 10% of the shares being sold will be reserved for BHEL’s employees. These employees too will enjoy a discount of 5% on the shares being sold. This policy move is all about the government’s strategy to foster public ownership of central public sector enterprises (CPSEs) by ensuring that the masses get a chance to benefit from the growth and success of these companies.
The decision is in line with the government’s move to reduce its equity in public sector companies through a process called disinvestment. The central government seeks to raise a large amount of money through disinvestment, which is expected to touch Rs 40,000 crore in the current fiscal year.
BHEL is the leading public sector company in the Power and Engineering field, and the decision of the government selling a stake in the company is part of the current trend of privatization and the entry of private investors in these companies. The paid-up equity capital of the company is Rs 489.52 crore, and for selling the equity, the government has appointed four merchant bankers.
