The government has selected Coal India Ltd (CIL), Life Insurance Corporation (LIC), Indian Overseas Bank (IOB), and Indian Railway Finance Corporation (IRFC) for selling shares in the stock market in the first two quarters of FY27. The sale will be phased to align with stable market conditions to prevent any volatility before the shares are offloaded.
Specifically, the government may reduce up to 2% stake in Coal India through an offer for sale, while an LIC offer for sale is anticipated in the second quarter, between July and September. Further stake dilution in IOB and IRFC is being considered, with the timing dependent on market stability, as per a report by NDTV Profit.
With an ambitious target of Rs 80,000 crore through disinvestment and asset monetization in FY27, the government aims for a significant increase from the revised estimate of Rs 33,837 crore for FY26. The strategy includes major public sector entities’ strategic sales and Offer for Sale (OFS) pipelines to boost non-tax revenues.
The government has already divested a 2.17% stake in IOB in December 2025 and a 2% stake in IRFC in February 2026. Additionally, an 8% stake sale in Central Bank of India was announced, with the non-retail offer for sale portion being oversubscribed 2.35 times.
Finance Minister Nirmala Sitharaman, during the post-budget press conference, affirmed the government’s commitment to pursue all approved disinvestment proposals, emphasizing continuity in the asset-sale strategy despite slower progress in 2025-26. The government aligns its asset monetization plans with the stock market’s capacity to absorb shares, ensuring a well-defined pipeline for effective implementation.
A senior government official highlighted the government’s robust asset monetization plan supported by a clearly outlined pipeline, expressing confidence in reaping benefits from this strategy.
