Government to sell 3% stake in BHEL via OFS with option to sell additional 2%

The Narendra Modi government is planning to sell a 3% stake in state-owned engineering firm Bharat Heavy Electricals Ltd (BHEL), with an option to sell an additional 2% through an offer for sale (OFS).

The OFS is scheduled to take place on February 11 and 12. The floor price for the OFS has been set at ₹254 per share.

Offer

for Sale in Bharat Heavy Electricals Limited (BHEL) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday . Government offers to disinvest 3% equity in the BHEL with an additional 2% as green shoe option. pic.twitter.com/IO2PanQqX0

— Secretary, DIPAM (@SecyDIPAM) February 10, 2026

Earlier today, BHEL received a letter of acceptance (LoA) from Bharat Coal Gasification and Chemicals Limited (BCGCL) for a project valued at approximately ₹2,800 crore, excluding customs duty and goods and services tax.

BCGCL is a joint venture between Coal India Limited, which holds a 51% stake, and BHEL, which owns the remaining 49%. The order pertains to the Syngas Purification Plant under the LSTK-2 package for BCGCL’s coal-to-2,000-tonnes-per-day ammonium nitrate project at Lakhanpur in Odisha’s Jharsuguda district.

Under the contract, BHEL will undertake design, engineering, supply of equipment, civil works, erection, commissioning, and operations and maintenance services.

The project is scheduled to achieve preliminary acceptance, including commissioning and performance guarantee tests, within 42 months from the date of the LoA. Operations and maintenance services will extend for a further 60 months following preliminary acceptance.

Shares of Bharat Heavy Electricals Ltd ended at ₹276.05, up by ₹1.45, or 0.53%, on the BSE.