BHEL shares decreased about 6% and reached about ₹259 at BSE & NSE on 11th February 2026 after opening lower than their last trading day’s closing price of around ₹276, despite announcing new business wins.
BHEL Announce New Order Worth ₹2,800 Cr
Following BHEL’s announcement of its new joint venture with Bharat Coal Gasification and Chemical Ltd (which is also part of Coal India) it received a Letter of Acceptance for a ₹2,800 Cr contract for the design, engineering, supply, erection, and commissioning of a Syngas Purification Plant in Odisha and the operation and maintenance thereof for a period of 60 months.
What Caused the Sell-Off And Drop-In Share Price?
The stock’s drop in price was not due to the operating performance of the company or a lack of new orders, but rather as a result of the selling pressure created from the anticipated sale of government holdings in the company.
The Indian Government began a new Offer for Sale (OFS), in which it is offering up to 5% of its current shareholding (3% + 2% green shoe) in BHEL. The floor price set at ₹254 (approximately 8% lower than the most recent closing price), creates downward pressure on the share price via an increase in the future supply of shares.
The total amount raised if the OFS is fully subscribed could be approximately ₹4,422 crore.
The government selling shares will add pressure on IPO shares for dilution. Consequently, there may be a rush to get out of the marketplace prior to being listed because more shares will be added after the sale.
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BHEL’s Strong Operating Results
There has not been a negative impact on BHEL’s operating performance due to the recent sell-off as seen by:
- A very large increase in Net Earnings in Q3 versus YTD + 1 year (a very strong indicator of operational performance)
- 13% higher Average Sales revenue versus YTD + 1 year (also a very large indicator of opertational performance) which shows good and increasing demand for BHEL’s services.
In general, BHEL’s overall business value will remain strong with the amount of new orders increasing in proportion to the overall increase in new orders for the entire Energy production and distribution sector (industry).
The market/equity community’s initial reaction to BHEL’s government divestiture will be based on the historical value of the BHEL stock. Therefore, many publicly traded stocks in the same category as BHEL will be facing stock price adjustments at listing because the government will be offering shares for sale (at a price lower than the average current market price); thus providing additional selling opportunities for these stocks prior to listing.
In conclusion:
- Stock Prices Dropped -6% On Friday Due To An OFS From The Govt – Offering Shared At 8% Discount To Govt Share Sale Price Of Prior Year.
- Good Company News – Received An Order Worth ~₹280 Billion – Also Had Strong Qtrely Performance.
