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BHEL to withdraw initial papers for FPO

business Updated: Apr 03, 2012 12:26 IST

State-owned equipment maker BHEL, which will announce annual results on Tuesday, said it would withdraw the initial papers for its follow-on offer that were filed with Securities and Exchange Board of India (Sebi).

"The Board of Directors of BHEL has approved the withdrawal of DRHP (draft red herring prospectus) filed by BHEL with Sebi," the company informed BSE.

The company said the decision has been taken after the receipt of "no-objection" for withdrawal of DRHP for BHEL FPO from the department of Heavy industry and Department of Disinvestment.

The company filed DRHP in September for the follow-on public offer (FPO) under which the government planned to offload five per cent stake in the company.

The sale of government's five per cent stake in the power equipment maker was expected to fetch over Rs 4,000 crore.

The government in July, 2011 had appointed four merchant bankers -- Morgan Stanley, DSP Merrill Lynch (Bank of America), ICICI Securities and Kotak Mahindra Capital -- for BHEL's FPO.

On August 30, it had approved the disinvestment of five per cent of its shareholding in BHEL. The government holds 67.72% stake in the entity.

Shares of the company were trading at Rs 262, up 0.655% on the BSE around noon.