BHEL OFS opens for retail investors today – Here’s how you can subscribe

The offer for sale (OFS) of Bharat Heavy Electricals Ltd. (BHEL) opens for subscription for retail investors on Thursday, February 12. The cut off price for retail investors in BHEL is ₹256.The government has launched an OFS to divest up to a 5% stake in the company. Under the OFS, the Centre will initially sell a 3% stake, with an option to offload an additional 2% in case of oversubscription.

The floor price has been fixed at ₹254 per share. The offer opened for non-retail investors on Wednesday.
The issue was oversubscribed 2.35 times, receiving over 22 crore share bids against the base offer of 10.44 crore shares.The shares were subscribed at a price of ₹260.8 apiece, compared to the floor price of ₹254 per share.

Here’s how retail investors can subscribe to the OFS:

– Open your trading account and navigate to the “Corporate Actions” or “OFS” sections.- Review the floor price, bid quantity, price, and other aspects as specified on the interface.

– Participants must know that the bid price entered should be above the floor price of the OFS.

– Investors must also ensure that sufficient funds are available in their accounts while bidding for the OFS, as the said amount will be blocked by the broker.

– In case the bidding is successful, the shares will be credited into your demat accounts within T+1 days. In case of a rejection, the said funds will be refunded back to the investors’ account.

Retail investors are generally classified as those whose authorised share capital is up to ₹2 lakh or lower.

BHEL has 17.55 lakh small retail investors, or those with authorised share capital of up to ₹2 lakh, who hold a 9.21% stake in the company.

Shares of BHEL ended Wednesday’s session 5.54% lower at ₹260.80. The stock has declined 11% so far this year.