Govt's share sale in BHEL over-subscribed, institutions put in over Rs 5,600 cr bids

New Delhi (PTI): The government's stake sale in BHEL was over-subscribed two times on the first day on Wednesday, with institutional investors placing bids worth over Rs 5,650 crore.

Institutional investors put in bids for over 22.07 crore shares at an indicative price of Rs 256.07 a share, as against over 9.40 crore shares on offer.

The base issue size was over-subscribed 2 times, with bids worth Rs 5,650 crore coming in.

The government is disinvesting 3 per cent equity in BHEL with an additional 2 per cent as a green-shoe option at a floor price of Rs 254 in the two-day offer for sale. Retail investors will be able to place a price bid on Thursday.

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 sale of total 17.41 crore shares, or 5 per cent stake, would fetch the government Rs 4,422 crore. The government holds 63.17 per cent in BHEL.

Shares of BHEL touched a low of Rs 258.60 in Wednesday's trade. The scrip settled at Rs 260.65, down 5.58 per cent over the previous close.

So far this fiscal year, the government has raised Rs 8,768 crore through PSU disinvestments.