BHEL calls off stake sale plan, targets Rs50,000-crore sales in FY'13

The board of directors of Bharat Heavy Electricals Ltd (BHEL) at its meeting in Mumbai today approved a proposal to withdraw its draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) for a follow-on share sale.

The company has received the consent (no-objection certificate) from the disinvestments department of the ministry of heavy industries for withdrawal of the DRHP for the follow-on offer, BHEL informed the Bombay Stock Exchange (BSE) toady.

Although the minister for heavy industries Praful Patel had said in February the share sale in the power equipment maker might happen in the fiscal year 2012-13, the group of ministers that met later in February to consider BHEL's stake sale did not take any decision on the matter.

The stake sale, which was approved by the cabinet in 2011, was expected to raise about $1 billion.

BHEL, the country's largest power equipment maker, is targeting gross sales of Rs50,000 crore ($9.9 billion) for the financial year 2012-13, chairman B Prasada Rao said after the board meeting.

The state-run power equipment maker reported provisional net profit of Rs6,870 crore ($1.35 billion) on a turnover of Rs49,301 crore for 2011-12.