BHEL shares fall over 6% as government OFS opens, issue sees slow start

New Delhi (PTI): The shares of Bharat Heavy Electricals Ltd (BHEL) fell over 6 per cent in trade on Wednesday, as the government's Offer For Sale (OFS) opened for subscription.

The issue got subscribed 5.11 per cent at 1150 hours.

Institutional investors put in bids for over 48.08 lakh shares at an indicative price of Rs 254.53 a share, as against over 9.40 crore shares on offer.

Through a 2 day OFS, the government is disinvesting 3 per cent equity in the BHEL with an additional 2 per cent as green shoe option at a floor price of Rs 254. Retail investors will get to put in a price bid on Thursday.

If fully subscribed at the floor price, sale of 17.41 crore shares, or 5 per cent stake, would fetch the government Rs 4,422 crore.

The base issue size comprises over 10.44 crore shares, or 3 per cent stake, in BHEL, plus a greenshoe option to sell over 6.96 crore shares or 2 per cent.

The government holds 63.17 per cent in BHEL.

Shares of BHEL touched a low of Rs 259.30 in morning trade, down 6 per cent over previous close of Rs 276.05 on Tuesday.

BHEL scrip was trading at Rs 260.75 in pre-noon trade on Wednesday. So far in the current fiscal year, the government has raised Rs 8,768 crore through PSU disinvestments.