Government to sell 5 per cent in BHEL to raise around Rs4,500 crore
23 May 2011
The government is expected to sell a 5-per cent equity stake in engineering major Bharat Heavy Electricals Ltd (BHEL), to raise around Rs4,500 crore.
The board of Bharat Heavy Electricals Ltd, at its meeting on 23 May, recommended disinvestment of 5 per cent of the paid-up equity capital of BHEL out of Government of India's shareholding.
Out of the total issue, 10 per cent will be reserved for allocation to employees, subject to the approval of the government, BHEL said in a filing with the Bombay Stock Exchange (BSE).
The BHEL board also gave "in-principle" approval for sub-division of the company's equity share (of face value Rs10 each) into five equity shares of face value Rs2 each, subject to all statutory and other requisite approvals.
The government currently holds 67.72-per cent equity in BHEL, which will come down to 62.72 per cent following the disinvestment.
The stake sale is part of the government's divestment programme, which is expected to raise around Rs40,000 crore during the current financial year.