By Admin 
BHEL OFS opens today: Shares of government defense company Bharat Heavy Electricals Limited (BHEL) slipped more than 5 percent during trading today on Wednesday, February 11. This fall in shares came after the government announced the launch of Offer for Sale (OFS) today to reduce its stake in the company. Through OFS, investors will get a chance to buy shares at a discounted rate.
How much stake will the government sell in the company?
With the news of launch of OFS today, BHEL shares fell to the day’s lowest level of Rs 261.40 on BSE. In the first phase, 3 percent stake will be sold and if demand is seen later, an offer to sell another 2 percent stake will be made as a green shoe option. The floor price for OFS has been fixed at Rs 254 per share.
Why is the government selling stake in the company?
The government is planning to sell 3 percent stake in BHEL under its ongoing disinvestment program so that along with increasing liquidity in the market, the scope of public shareholding will also increase. The government will sell more than 10.44 crore shares at the floor price of Rs 254 per share, which is equivalent to 3 percent stake. For this, non-retail investors will get a chance to bid on 11th February and retail investors will get a chance to bid on 12th February.
Apart from this, the government has also kept a greenshoe option to sell additional 2% stake (6.96 crore shares) if oversubscribed, which will increase the total disinvestment to 5%.
It is expected to fetch Rs 2650 crore from the sale of 3% stake at the base level, and if the greenshoe option is exercised, the total deal size can reach Rs 4422 crore. The government currently holds 63.17 percent stake in BHEL. OFS will take place during regular market hours, from 9:15 am to 3:30 pm, through a dedicated OFS window.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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