The investment and merchant bankers have been asked to respond to the EoI by July 11. The government plans to offload 10 per cent of BHEL shares in the market through a public offer route.

Up to 15 per cent of the offered shares have been reserved for the employees of the company. By selling 1.6 crore shares of its shares in BHEL the government expects to raise around Rs 1,500 crore (Rs 15 billion).

After the divestment the government equity in the company will come down to 57.72 per cent from 67.72 per cent.

The advertisement inviting expression of interest does not specifically mention if the banker selected for the purpose would also have to advise the government on how the stock of the company should be split.

While giving a go ahead with the divestment of 10 per cent of shares in BHEL, the cabinet has also decided that stock of the company would be split so that more and more retail investors can participate in the offer.