Cabinet Committee on Economic Affairs approved Disinvestment of 5 per cent of stake in BHEL

The Cabinet Committee on Economic Affairs on 30 August 2011 approved disinvestment of 5 per cent of government's stake in power equipment maker BHEL which is likely ti fetch Rs. 4320 crore. The government will disinvest 5 per cent equity in the company, out of its share holding of 67.72 per cent through book building process in the domestic market.

Based on the market capitalisation of Rs. 86532 crore at close on the Bombay Stock Exchange on 30 August 2011, 5 per cent stake in the company was estimated to be worth over Rs. 4326 crore (nearly $ billion). A price discount of 5 per cent would be given for retail investors, as part of efforts to encourage greater public ownership in Central Public Sector Enterprises.

Ten per cent of the shares to be offered for sale through further public offer will be reserved for employees.
BHEL’s paid-up equity capital stands at Rs. 489.52 crore.

After this disinvestment Government of India shareholding in the company would come down to 62.72%.

Bharat Heavy Electricals Limited (BHEL), a Central Public Sector Enterprise (CPSE) is engaged in execution of heavy engineering / electrical equipment manufacturing projects.