New Delhi, May 25: The government has drawn up a plan to offload stakes in key public sector enterprises through market offerings, aiming to meet an ambitious disinvestment target of Rs 80,000 crore while ensuring stability in equity markets.
According to a report, select public sector companies have been shortlisted for phased stake sales in the first two quarters of FY27. These include Coal India Ltd, Life Insurance Corporation, Indian Overseas Bank and Indian Railway Finance Corporation. The proposed sales are expected to be executed through offer-for-sale routes, with timing linked to prevailing market conditions.
Officials indicated that the government intends to avoid market volatility and will proceed with share sales only under stable conditions. The calibrated approach reflects a strategy to maximise returns while maintaining investor confidence.
Among the planned transactions, the government may dilute up to a 2 per cent stake in Coal India through an offer for sale. A similar exercise involving Life Insurance Corporation is expected during the second quarter, between July and September. Additional stake sales in Indian Overseas Bank and Indian Railway Finance Corporation are under consideration, though timelines remain subject to market performance.
The disinvestment push forms part of a broader fiscal strategy to enhance non-tax revenues. The Rs 80,000 crore target for FY27 marks a significant increase compared to the revised estimate of Rs 33,837 crore for FY26, indicating a more aggressive approach to asset monetisation.
Recent transactions suggest continued activity in this space. The government had previously divested a 2.17 per cent stake in Indian Overseas Bank in December 2025 and a 2 per cent stake in Indian Railway Finance Corporation in February 2026. In another instance, an 8 per cent stake sale in Central Bank of India saw strong demand, with the non-retail portion subscribed more than twice.
Officials stated that disinvestment decisions are being aligned with the stock market’s capacity to absorb large volumes of shares. The approach involves preparing a pipeline of offerings and executing them in phases to avoid disrupting market equilibrium.
At the policy level, the government has reiterated its commitment to pursuing disinvestment proposals that have received cabinet approval. The continuation of this strategy reflects an effort to maintain momentum in asset monetisation despite slower progress in the previous financial year.
Authorities also indicated that a structured pipeline has been developed to guide future transactions. The focus remains on executing stake sales in a manner that balances fiscal objectives with market stability.
The planned disinvestment programme is expected to play a key role in supporting government finances, with proceeds contributing to revenue generation without increasing tax burdens.
