Banks, cash-rich PSUs keen to buy Govt stake in BHEL

Public sector banks and cash-rich Government-owned companies are keen to pick up a stake in Bharat Heavy Electricals Ltd (BHEL). This will help the Government in its disinvestment programme. The Finance Ministry has written to the Heavy Industries Ministry seeking its views on selling BHEL’s shares to other Central Public Sector Enterprises (CPSEs). The Government aims to sell 5 per cent of the shares of the power generation equipment maker. “After the Finance Ministry’s letter last week, BHEL has been asked to consult with market intermediaries. Accordingly, we will revert to the Finance Ministry about the plan for selling stakes to different entities,” a senior Heavy Industries Ministry official told Business Line. The ‘Maharatna’ tag has prompted many banks and cash-rich companies to show interest in BHEL. Selling shares to institutions will help in two ways. First, the Government will get the money it is aiming for, and second, BHEL’s already-subdued shares will not be affected. ref: http://www.thehindubusinessline.com/companies/banks-cashrich-psus-keen-to-buy-govt-stake-in-bhel/article5538947.ece