The Centre has put four to five planned stake sales in public sector companies on hold for the second half of FY27 as falling share prices complicate its disinvestment plans, according to official sources.
Potential offers for sale (OFS) in Indian Overseas Bank and Hindustan Zinc are among the transactions affected. The proposed strategic sale of IDBI Bank has also been delayed, with no clarity on when the process will move forward.
The government is reassessing the timing of further stake sales and will wait for market conditions to improve before proceeding, officials said. The correction has raised concerns about the valuations the Centre could secure from fresh share sales.
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The development came as the NSE Nifty 50 has fallen 12% since the war involving Iran and the US began, while the Nifty PSE index, which tracks 20 public sector stocks, has declined 14% over the same period. Shares of Indian Overseas Bank and Hindustan Zinc have dropped as much as 17%.
Rising oil prices amid escalating tensions in the Middle East, along with higher US Treasury yields, inflation concerns and rising interest rates, have added to the pressure on equities.
The government has mobilised nearly Rs 62,124 crore through disinvestment and asset monetisation so far. Disinvestment receipts account for Rs 55,757 crore, while asset monetisation has contributed Rs 6,367 crore.
The Centre has set a target of Rs 80,000 crore for asset monetisation in FY27. The timing of further stake sales will depend on market conditions, officials said.
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