State-run engineering behemoth Bharat Heavy Electricals Limited (BHEL) has set the stock market abuzz by securing a massive contract worth approximately ₹2,800 crore. The Letter of Award (LoA) was received on February 10 from Bharat Coal Gasification and Chemicals Limited (BCGCL), a strategic joint venture between Coal India Limited (51%) and BHEL (49%).

Project Scope and Execution: The order is centered around a landmark ‘Coal-to-Ammonium Nitrate’ project located in Lakhanpur, Jharsuguda district, Odisha. Under the LSTK-2 package, BHEL will be responsible for the Syngas Purification Plant. The contract covers the entire lifecycle of the project—from design, engineering, and equipment supply to civil works, commissioning, and a subsequent 60-month Operation and Maintenance (O&M) period. The initial phase is slated for completion within 42 months, significantly boosting BHEL’s revenue visibility for the coming years.

Market Performance & Strategic Divestment: The timing of this order is crucial as BHEL shares closed at ₹275.90 on Tuesday, marking a steady gain. Investor confidence is further bolstered by the company’s Q3 performance, which saw a 16.4% YoY revenue jump to ₹8,473 crore and a net profit of ₹390 crore. However, the market is also reacting to reports that the Indian government is planning an Offer for Sale (OFS) to divest up to a 5% stake in the company. With a projected floor price between ₹255 and ₹260, the government aims to raise roughly ₹4,500 crore. Between record-breaking orders and potential divestment, BHEL remains the most watched stock on Dalal Street this week.