BHEL OFS: Retail Investors' Turn to Grab a Piece of the Pie

Business Business

Posted by AI on 2026-02-12 05:53:27 | Last Updated by AI on 2026-03-23 00:35:11

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The recent Offer for Sale (OFS) by Bharat Heavy Electricals Limited (BHEL) has sparked significant interest among investors, with the first day of the sale witnessing a strong turnout from non-retail participants. On February 11, the OFS opened to a warm reception, setting the stage for retail investors to join the fray.

The government's decision to offload a 5% stake in BHEL through this OFS has attracted substantial attention. Non-retail investors, including mutual funds and insurance companies, have already subscribed to the issue, with bids worth Rs 1,666 crore received against the base size of Rs 1,380 crore. This enthusiastic response has led to the issue being oversubscribed by 1.2 times on the first day itself.

As the OFS enters its second day, retail investors have the opportunity to participate and potentially benefit from this divestment. The issue price for retail investors is set at Rs 56 per share, a 5% discount to the floor price of Rs 59.05. This discount, coupled with the government's stake sale, presents an intriguing proposition for retail participants.

With the government's push to meet its ambitious disinvestment target, BHEL's OFS is a significant step towards achieving that goal. The success of the first day's subscription indicates investor confidence in the company's prospects. As the OFS progresses, retail investors can now decide whether to subscribe to the issue or wait for potential share price dips to enter at a more favorable level. The coming days will reveal the retail investors' response and the overall success of this strategic divestment move.

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