The Government of India has initiated a strategic disinvestment in Bharat Heavy Electricals Limited (BHEL) through an Offer for Sale (OFS). This move involves offloading up to 5% of its total equity stake to institutional and retail investors. The sale is structured with a base offer of 3%, representing 10.44 crore shares. An oversubscription option for an additional 2%, or 6.96 crore shares, brings the potential total divestment to 17.41 crore shares. The floor price for the offer is fixed at ₹254 per share. This represents a significant discount compared to the stock’s recent closing price of approximately ₹275.90. The government aims to raise roughly ₹2,653 crore through the base offer, potentially increasing to ₹4,422 crore if the full 5% is exercised. Bidding for the OFS is conducted over two days. Non-retail and institutional investors were granted access on Wednesday, February 11, 2026. Retail investors, defined as those bidding up to ₹2 lakh, and eligible BHEL employees can place their bids on Thursday, February 12, 2026. This divestment arrives as BHEL reports a sharp financial turnaround. In the December 2025 quarter, the company’s net profit more than tripled to ₹382 crore, up 206% year-on-year. Revenue from operations also rose 16% to ₹8,473 crore, driven by robust execution and a dominant position in the power segment. The company’s order book remains a critical pillar of its market valuation. As of December 31, 2025, the outstanding order book stood at ₹2,22,800 crore. The power sector accounts for 80% of these orders, while the industry and export segments contribute the remaining 20%. Broader market trends in the power sector further support the stock’s outlook. Electricity demand in India grew by 6.7% in February 2025 as the summer season approached. Installed capacity has surpassed 476 GW, with a strong shift toward renewable sources, which now account for nearly 49% of the national mix. BHEL stock has shown significant long-term growth, with a 1-year return of approximately 30% and a 3-year surge exceeding 250%. The current market capitalization stands at approximately ₹96,000 crore. The OFS is expected to enhance the stock's liquidity and increase public shareholding, which currently sits at roughly 36.83%. The government remains the majority owner with a 63.17% stake prior to this sale. Market analysts view the stake sale as a timely move given the current focus on PSU asset monetization and the revival of capital expenditure in the power and infrastructure sectors. BHEL’s recent operational milestones, including synchronization of major 800 MW units, underline its recovery and growth potential.