The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved disinvestment of 5% paid up equity in Bharat Heavy Electricals Limited (BHEL), a Central Public Sector Enterprise (CPSE) engaged in execution of heavy engineering / electrical equipment manufacturing projects.
The Government currently holds 67.72% shareholding in BHEL.
The stake sale in BHEL will be done through 100% book building process in the domestic market.
The move is in line with the Government of India`s policy of enhancing people`s ownership in the CPSEs and enabling them to share in the growth and prosperity of these CPSEs.
The paid up equity capital of BHEL is Rs 4.89bn.
The Government has decided to allow 5% price discount to the retail investors as well, to encourage greater public ownership of the public sector companies. 10% of the shares to be offered for sale through further public issue shall be reserved for the employees of the Company.
The Government has also decided to allow 5% price discount to the employees of BHEL.
After this disinvestment, the Government of India shareholding in BHEL would come down to 62.72%.