- Government plans phased Offer For Sale in three PSUs in first half of FY27
- Coal India, LIC, Indian Overseas Bank, and IRFC are potential OFS candidates
- Up to 2% stake in Coal India may be diluted via OFS in early FY27
The government is preparing a phased pipeline of Offer For Sale transactions across three of the four public sector enterprises in the first two quarters of FY27. Coal India, Life Insurance Corporation, Indian Overseas Bank and IRFC have emerged as the likely candidates, sources have told NDTV Profit.
The rollout with be calibrated as per market conditions, with the government keen on easing of volatility before proceeding.
Among the specific transactions under consideration, the government may dilute up to 2% stake in Coal India through an OFS. An LIC OFS is likely in Q2, between July and September. Further stake dilution in Indian Overseas Bank and IRFC is under active consideration, though the timing of the OFS hinges on market stability.
This comes against the backdrop of an ambitious asset sale and monetisation target of Rs 80,000 crore for FY27. The government has already been active on the divestment front, having divested a 2.17% stake in IOB in December 2025 and a 2% stake in IRFC in February 2026.
Most recently, the gvoernment announced an 8% stake sale in Central Bank of India, where the non-retail OFS portion was subscribed 2.35 times.
An email sent to DIPAM and the Finance Ministry remained unanswered at the time of publication.
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