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Govt Plans Up To 5% BHEL Stake Sale Worth ₹4,500 Cr
10 Feb
Summary
- Government plans to sell up to 5% stake in BHEL.
- BHEL secured a ₹2,800 crore project from its JV partner.
- The stake sale could raise approximately ₹4,500 crore for the government.
The Indian government is considering selling up to a 5% stake in Bharat Heavy Electricals Ltd (BHEL) via an Offer for Sale (OFS). This potential divestment could fetch the government approximately ₹4,500 crore, with the floor price anticipated to range from ₹255 to ₹260 per share. The Department of Investment and Public Asset Management (DIPAM) is currently gathering feedback from financial advisors on this proposed sale.
In parallel, BHEL has received a letter of acceptance for a significant project valued at around ₹2,800 crore (excluding taxes and duties) from Bharat Coal Gasification and Chemicals Limited (BCGCL). This order is for the Syngas Purification Plant, a crucial component for BCGCL's ammonium nitrate project in Jharsuguda, Odisha. BCGCL is a joint venture where Coal India Limited holds a 51% stake and BHEL holds the remaining 49%.
Under the terms of this new contract, BHEL will be responsible for the entire lifecycle of the project, including design, engineering, equipment supply, civil works, erection, commissioning, and subsequent operations and maintenance services. Preliminary acceptance, including successful commissioning and performance guarantee tests, is targeted within 42 months of the letter of acceptance, with operations and maintenance continuing for an additional 60 months post-acceptance.
