Bhel FPO only after market improves: Praful Patel

Mumbai: Union Heavy Industries & Public Enterprises Minister Praful Patel today said the government is waiting for the market sentiment to improve to launch the $1-billion follow-on public offer of Bharat Heavy Electricals (BHEL).

“In the current market situation, I don’t think the Bhel issue will go ahead. It will go ahead at the right time, when the market improves. We have given an in-principle approval, (but) that does not mean we have given the timing,” Patel told reporters on the sidelines of an IEEMA (Indian Electrical & Electronics Manufacturers Association) event here.

“There is no hurry for Bhel to go for 5 percent dilution,” Patel added.The comments come on the heels of the government calling off the over Rs 11,000-crore ONGC follow-on issue earlier this month.

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[caption id=“attachment_92910” align=“alignleft” width=“380” caption=“At the end of June, the government held 67.72 percent stake in Bhel. Reuters”]  [/caption]

The issue was to hit the markets on 20 September but the markets started crashing from the middle of the month following the renewed credit crisis in the Eurozone economies.

At the end of June, the government held 67.72 percent stake in Bhel.The proposed share sale is part of the government’s ambitious programme to garner Rs 40,000 crore through divestment in the current fiscal.

But it has barely achieved three percent of the target through Rs 1,100 crore from divesting five percent in Power Finance Corporation in the current fiscal.

PTI