BHEL cash-rich; FPO likely next fiscal

The country's largest power equipment maker, BHEL, on Thursday said it is sitting on comfortable cash reserves but if the government is keen on an FPO to raise money it could be done in the next financial year.

"We are a cash-surplus company, but if the government wants to bring out an FPO (follow-on public offer), they can, but I think only in the next financial year," BHEL chairman and managing director K Ravi Kumar said.

The government at present holds a 67.72 per cent equity stake in BHEL, which would come down to 57.72 per cent if it divests 10 per cent equity.

The Minister of Heavy Industries and Public Enterprises Vilasrao Deshmukh had earlier said that the point of divestment in the company (BHEL) is still under consideration.

As a part of its 100-day agenda, BHEL would enter into an agreement with the Indian Railways for supply of stainless steel EMU coaches on a long-term basis. It would synchronise eight thermal and hydro sets to generate 1,200 MW capacity.

The company would synchronise five captive power plants totalling 228 MW of capacity as a part of its 100-day agenda. Kumar said that the company has received orders worth Rs 10,000 crore (Rs 100 billion) during the April-June quarter.