Govt to divest 10% stake in BHEL

The Centre at present holds a 66.72 per cent equity in the public sector unit

“The point of disinvestment (in BHEL) is still under consideration... the government has definitely a positive thinking on that line,” Minister of Heavy Industries & Public Enterprises Vilasrao Deshmukh said when asked whether the government is considering divesting 10 per cent in the company. Briefing reporters, Deshmukh said his department would back the disinvestment policies of the government.

BHEL is a power equipment Rs 28,000 crore listed company. Its stock is trading at Rs 2,060.10 on the Bombay Stock Exchange. The government, if it chooses to further disinvest its stake in the company, will have to come with a follow-on public offer.

The Centre at present holds a 67.72 per cent equity stake in power equipment maker BHEL, which would come down to 57.72 per cent if it divests 10 per cent equity.

Meanwhile, BHEL’s top brass will on Monday meet Deshmukh, who said the government is considering further disinvestment in the public sector firm. When asked whether the disinvestment issue would be taken up in the meeting, BHEL Chairman & Managing Director K Ravi Kumar said, “We have so many issues to discuss, now.”