The government’s strategic divestment in Bharat Heavy Electricals Limited (BHEL) successfully concluded this week, marking a significant milestone in the current fiscal year's disinvestment program. The Offer for Sale (OFS) for a **5 per cent** stake saw robust participation, ending with an over-subscription of **1.34 times**. The transaction was structured with a base offer of **3 per cent**, which the government expanded by exercising a green-shoe option for an additional **2 per cent** due to high demand. Retail and institutional investors both showed strong interest, despite a volatile market environment. The floor price for the sale was set at **₹254 per share**, representing a tactical discount of approximately **8 per cent** from the pre-announcement closing price. As of February 12, 2026, the stock has stabilized near the **₹260** mark, reflecting a market capitalization of approximately **₹96,122 crore**. The government's total proceeds from this stake sale are estimated at over **₹4,422 crore**. This capital infusion supports the broader fiscal goal of increasing public shareholding in Central Public Sector Enterprises (CPSEs) while enhancing the stock's liquidity and free float in the secondary market. BHEL’s operational recovery has provided a supportive backdrop for this divestment. The company recently reported a massive surge in profitability for the December 2025 quarter, with net profit jumping nearly **190 per cent** year-on-year to **₹390.40 crore**. Revenue from operations also rose by **30.4 per cent**, reaching **₹8,473.10 crore**. Investor confidence remains anchored by a record-high order book, which currently stands at over **₹2.22 lakh crore**. This provides revenue visibility for the next **3 to 4 years**, driven primarily by the power sector, which accounts for **80 per cent** of the total mandates. Recent project wins include major EPC contracts for thermal power plants and supply orders for Vande Bharat sleeper train transformers. Furthermore, the company is positioned as a key player in India’s energy transition, with a strategic focus on scaling nuclear power capacity from **8.8 GW** to a target of **100 GW** by 2047. While the stock has seen a temporary price adjustment toward the OFS floor price, the long-term outlook is supported by improving operating leverage and the accelerating domestic manufacturing cycle. BHEL continues to hold a dominant **90 per cent** market share in the domestic thermal power equipment segment.