PSU Powerhouse BHEL Sees Share Spike After Litigation Claim—What’s Next?

Bharat Heavy Electricals Ltd (BHEL), a leading public sector undertaking (PSU), saw its share price rise during intraday trading on Tuesday following an update regarding a litigation claim.

The stock opened at ₹183.80 on the Bombay Stock Exchange (BSE), which was lower than its previous closing price of ₹185.45. Despite the weaker opening, investor sentiment appeared to turn positive as the trading session progressed. The stock climbed to an intraday high of ₹191.20, marking a gain of over 3% from its opening price.

The upward movement in BHEL’s stock price came after the company provided an update about an ongoing legal matter, drawing attention from market participants. The latest developments surrounding the litigation claim seemed to influence trading activity, leading to increased buying interest in the PSU stock.

While the exact implications of the litigation update remain to be fully analyzed, the market’s reaction suggests that investors were closely monitoring the situation. As trading continued, the stock’s performance reflected the dynamic nature of market responses to corporate disclosures and legal updates.

On March 4, 2024, Bharat Heavy Electricals Ltd (BHEL) officially notified the National Stock Exchange of India (NSE) and BSE Ltd about a newly filed Writ Petition. The company stated that the details of this petition meet the criteria of materiality as per regulatory requirements.

This disclosure indicates that the legal matter in question is significant enough to potentially impact the company’s operations, financials, or investor interests. As part of its compliance obligations, BHEL informed the stock exchanges to ensure transparency and keep stakeholders updated on any developments related to the litigation.

The exact nature of the Writ Petition and its implications were not immediately detailed in the announcement, but given its classification as a material event, it is expected to be closely monitored by investors and analysts.

Bharat Heavy Electricals Ltd (BHEL) has provided an official update regarding a legal dispute involving a financial claim against Raichur Power Corporation Ltd. (RPCL).

In its latest disclosure, BHEL announced that it has filed a writ petition before the Karnataka High Court, seeking judicial intervention in a payment dispute. The company is contesting the withholding of ₹423.42 crores by RPCL, arguing that the retention of this amount is unjustified. Through its petition, BHEL has requested the court to declare the withholding of funds as wrongful and to direct RPCL to release the outstanding payment in its favor.

Given the substantial financial value of the claim, this legal move is considered a significant step by BHEL to safeguard its interests. The company has officially communicated this development as part of its regulatory obligations, ensuring transparency for stakeholders. The outcome of this petition remains to be seen as the legal proceedings unfold.

While Bharat Heavy Electricals Ltd (BHEL) has been pursuing its claim for outstanding dues, the company has also recently faced a legal challenge from another entity.

In February 2025, an arbitration case was initiated against BHEL by M/s Dipon Gulf General Contracting LLC, a company based in the United Arab Emirates (UAE). According to BHEL’s earlier disclosures, the claimant has invoked arbitration proceedings over a dispute related to additional payments. The arbitration pertains to contracts executed as part of the Maitree Project in Bangladesh, where Dipon Gulf General Contracting LLC has alleged that it carried out additional work beyond the agreed scope and is seeking compensation for the same.

BHEL has acknowledged the arbitration filing and is addressing the matter through the legal framework. The resolution of this dispute will depend on the arbitration process and further proceedings in the case.

Bharat Heavy Electricals Ltd (BHEL) has responded to the arbitration claim filed by M/s Dipon Gulf General Contracting LLC, UAE, asserting that the claims made by the petitioner are not valid under the terms of the contract.

According to BHEL, the claimant did not undertake any additional work beyond the agreed contractual scope, and therefore, the demand for extra payments is not justified. The company has also stated that other claims raised by Dipon Gulf General Contracting LLC are not tenable as per the provisions of the contract.

As part of the arbitration proceedings, BHEL has been named as the respondent and has been asked to address claims amounting to $29,668,016.82, as per the intimation provided to the Singapore International Arbitration Centre (SIAC). In response, BHEL is in the process of finalizing its counterclaim, which will be submitted as part of the legal proceedings. The arbitration process is ongoing, and further developments will depend on the legal evaluation of the claims and counterclaims.