The Narendra Modi government intends to divest a minority stake in BHEL (Bharat Heavy Electricals Ltd.) through an offer for sale, various market disclosures said. The Centre will sell as many as 3% of its holding in the state-owned engineering company and has retained an oversubscription option for another 2%, in case demand remains strong. The OFS will be conducted on two trading days: February 11 and February 12, 2026. The floor price for the sale is fixed at ₹254 per share. This represents a discount of around 8% to BHEL’s February 9, 2026, NSE closing price.
The base offer of 3% of the total equity on offer is valued at about ₹2,650 crore. The government could raise an additional ₹1,770 crore by selling another 2% stake if the oversubscription option is fully exercised. All in all, the sale could fetch upwards of ₹4,400 crore.
The seller in the OFS process is the President of India through the Ministry of Heavy Industries, who is the promoter of BHEL. This stake sale is part of the larger disinvestment strategy of the Government of India, where the government wants to raise resources through disinvestment with management control of the companies in the public sector.
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In the case of non-retail investors, the OFS will commence on February 11 at 9:15 am IST and will continue till 3:30 pm IST on the same day. For retail investors along with non-retail investors willing to carry forward their bids, the OFS will continue on February 12. On that day, it will commence again at 9:15 am IST and will be open till 3:30 pm IST.
This announcement comes on a day when BHEL also achieved a large business deal. BHEL received a letter of acceptance from Bharat Coal Gasification & Chemicals Limited for a project worth about ₹2,800 crore. However, the value of the project excludes customs duty and GST.
BCGCL is a joint venture. It is a joint venture between BHEL and Coal India Limited. In addition to that, BHEL holds a 49% stake in the project. On the other hand, Coal India Limited holds a 51% stake in the project.
The project involves the order for the Syngas Purification Plant under the LSTK-2 package. The plant forms part of the BCGCL coal to ammonia nitrate project. It has a capacity of producing 2000 TPD. The plant is located in the state of Odisha. The location in particular is the Lakhanpur area in the Jharsuguda district.
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Under the contract, BHEL will be entrusted with the entire scope of works. The scope includes design and engineering, equipment supply, civil works, erection, commissioning, and operations and maintenance. BHEL will be undertaking the performance guarantee tests as part of the commissioning activities.
The project has to be completed within 42 months from the date of the letter of acceptance to obtain preliminary acceptance. However, BHEL would be required to provide operations and maintenance support for 60 months after this phase. This ensures visibility for BHEL in its order book.
In addition, the OFS announcement of BHEL also indicates an upward trend for the company, as the company has recently reported good quarterly results, with its profit rising significantly compared to the same period last year. In addition, the company has received many big orders from leading entities, for instance, Hindalco.
Shares of Bharat Heavy Electricals Ltd ended on a higher note on the BSE on Monday. The shares of the company closed at Rs 276.05, up by Rs 1.45, or 0.53%, over the previous close. The market will have to await the results of OFS on the shares of the company in the next few days, especially against the backdrop of jobs data globally and interest rate calls.
