The President of India, acting through the Ministry of Heavy Industries, announces a proposed Offer for Sale (OFS) of Bharat Heavy Electricals Limited (BHEL) equity shares. The Base Offer Size targets the sale of up to 10,44,61,901 Equity Shares, representing 3.00% of the paid-up capital. The sale is scheduled for February 11 and 12, 2026, using the stock exchange mechanism, with a potential 2.00% Oversubscription Option.
BHEL Offer for Sale Announcement
The President of India, represented by the Ministry of Heavy Industries, Government of India (the “Promoter” and “Seller”), has notified the proposed Offer for Sale (OFS) of equity shares of Bharat Heavy Electricals Limited (BHEL). This action is being taken in accordance with the SEBI Master Circular and Stock Exchange Guidelines pertaining to the OFS segment.
Offer Size and Schedule
The core offering, referred to as the “Base Offer Size”, involves the sale of up to 10,44,61,901 Equity Shares, which equates to 3.00% of the total issued and paid-up equity share capital. Additionally, the Seller retains an option to sell up to an extra 6,96,41,267 Equity Shares (representing 2.00%) via the “Oversubscription Option”. Collectively, this represents a potential sale of 5.00% of the paid-up capital.
Trading Dates
The Offer will take place over two trading days:
- T Day (February 11, 2026): Bidding open from 9:15 a.m. to 3:30 p.m. IST, exclusively for non-Retail Investors.
- T+1 Day (February 12, 2026): Bidding open from 9:15 a.m. to 3:30 p.m. IST for Retail Investors, Employees, and non-Retail Investors carrying forward un-allotted bids.
Investor Categories and Allocation
The offer structure allocates shares across defined categories:
Non-Retail Category Allocation Methodology
Non-Retail Investors can carry forward un-allotted bids from T Day to T+1 Day. A minimum of 25% of the Offer Shares is reserved for Mutual Funds and Insurance Companies, subject to valid bids at or above the Floor Price. Bidders, except for Mutual Funds and Insurance Companies, are limited to allocating not more than 25% of the Offer Shares per single bidder.
Retail Category Allocation Methodology
A minimum of 10% of the Offer Shares is reserved for the Retail Category. A “Retail Investor” is defined as an individual placing bids for a total value not exceeding ₹200,000 aggregated across all Stock Exchanges. Retail Investors may bid at the specified “Cut – Off Price” or above the Floor Price.
Employee Category Offer
An additional 87,05,158 Equity Shares (0.25% of total capital) may be offered to eligible employees. Employees are eligible to bid for up to ₹500,000 worth of shares, with a maximum allotment per employee capped at ₹200,000, bid exclusively at the “Cut – Off Price” on T Day.
Pricing and Floor Details
The definitive price details are as follows:
- Floor Price: The offer floor price is set at ₹254.00 per Equity Share.
- Retail Discount: There will be Nil retail discount applied to this offer.
Allocation will generally be done on a price priority basis at multiple clearing prices, except for Retail Investors who can bid at or above the determined Cut-Off Price.
Conditions for Participation
Participation requires strict adherence to OFS Guidelines, especially regarding margin requirements and withdrawal conditions:
- Non-Institutional Investors placing bids on T Day must deposit 100% of the bid value upfront in cash.
- Institutional Investors have an option to bid without upfront payment, subject to custodian confirmation rules.
- The Seller reserves the right to cancel the Offer in full if sufficient demand (at or above the Floor Price) is not received from non-Retail Investors on T Day.
Jurisdictional Disclaimer
This Offer is not a public offer in India under the Companies Act, 2013, nor is it an offer registered under the U.S. Securities Act of 1933. The shares are being offered only to “qualified institutional buyers” (QIBs) in the United States under Rule 144A exemptions or in “offshore transactions” under Regulation S. Bidders are explicitly advised against relying on any U.S. regulatory registration or prospectus documentation.
Source: BSE
