BHEL Disinvestment approved by Indian Gov.

Cabinet Committee on Economic Affairs (CCEA)30-August, 2011 20:49 IST

Disinvestment of 5% paid up equity of Bharat Heavy Electrical Ltd.

The Cabinet Committee on Economic Affairs today approved disinvestment of 5% paid up equity of Bharat Heavy Electricals Limited (BHEL), a Central Public Sector Enterprise (CPSE), engaged in execution of heavy engineering / electrical equipment manufacturing projects. This 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 Government will disinvest 5% equity in the company, out of its share holding of 67.72% through book building process in the domestic market. The paid up equity capital of the company is Rs.489.52 crore. BHEL is a listed Central Public Sector Enterprise. 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. Ten percent of the shares to be offered for sale through further public offer shall be reserved for the employees of the Company. Government has also decided to allow 5% price discount to the employees of the company. After this disinvestment Government of India shareholding in the company would come down to 62.72%.