Bharat Heavy Electricals Ltd has withdrawn the Draft Red Herring Prospectus for a follow on public offer filed with Securities and Exchange Board of India.
It is not clear whether the company will be re-filing the prospectus in the near term or has decided to put off the FPO because of market turbulence. The sale was through the disinvestment of Government’s stake in the company.
In a communication to the NSE, BHEL said the decision was taken after "receipt of 'no-objection' for withdrawal of DRHP for FPO from the Department of Heavy Industry/Department of Disinvestment".
BHEL’s 483-page DRHP for the FPO through the book building route was posted on SEBI's Web site on October 4, 2011. The offer document mentioned that the FPO would offer for sale 24,476,000 equity shares of face value of Rs 10 each at a premium to be determined later.
The net offer to the public was 22,028,400 shares and the reservation to the eligible employees was 2,447,600 shares. The offer would constitute 5 per cent of the post offer paid-up capital and the net offer would constitute 4.50 per cent of the post offer paid-up capital of BHEL.