Stock in Focus: Government company Bharat Heavy Electricals Limited (BHEL) has received Letter of Acceptance (LoA) from Steel Authority of India Limited (SAIL). Under this, a captive power plant is to be set up in the IISCO Steel Plant located in Burnpur, West Bengal.
The order is related to the Captive Power Plant (CPP-1) package under SAIL’s 4.08 million tonne per annum crude steel capacity addition project. The estimated value of this order is between ₹1,200 crore to ₹1,500 crore. This does not include GST.
What work will be done in turnkey contract
The project awarded to BHEL will be on turnkey basis. Under this, BHEL will do work like design, engineering, construction, supply of equipment, transport, unloading, storage. However, civil work is not included in this contract. The project has to be commissioned within 39 months from the effective date of the contract.
OFS got tremendous response
Last week, BHEL’s Offer for Sale (OFS) received 2.3 times subscription on the very first day. 9.4 crore shares were put up for sale, while bids came for more than 22 crore shares. Institutional investors bid more than ₹5,650 crore. Due to this the issue was subscribed more than twice on the very first day. Seeing strong demand, the government put the entire 5 percent stake up for sale by exercising the green shoe option.
Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the OFS received tremendous participation and was oversubscribed by 2.3 times on the first day. Bidding for retail investors and employees was scheduled for February 12, 2026.
Condition of BHEL shares
Shares of BHEL closed at ₹262.80 with a slight gain of 0.11 per cent on NSE on Tuesday, February 17. The stock is up 21.18% in the last 6 months. At the same time, it has given a return of 35.68% in 1 year. It has given multibagger returns of 550% in the last 5 years. Its market cap is Rs 91.46 thousand crore.
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