So far in 2026, the government has raised around Rs. 59,228.56 crore by selling stakes in several listed PSUs through the OFS route. This marks the highest fundraising through PSU stake sales since 2015, when the government raised approximately Rs. 35,291 crore from five listed companies.
As many as listed firms have collectively raised around Rs. 59,228.56 crore through OFS issues in 2026 through PSUs. The figure is close to the Rs. 30,178 crore raised by 28 companies in 2024, according to data from Prime Database.
Despite the sharp increase in government-led PSU stake sales, the overall OFS fundraising record remains with 2015, when 19 listed companies collectively raised around Rs. 35,566 crore. The latest figures highlight the renewed importance of OFS as a fundraising and disinvestment route.
Unlike previous years, the government has front-loaded its disinvestment programme, aiming to raise funds earlier in the financial year. This strategy could help the government manage rising expenditure pressures and maintain greater flexibility in meeting its fiscal targets.
One of the key factors is that there will be an increase in the cost of crude oil, which will have a detrimental effect on the government in terms of subsidies, especially LPG. However, the need for subsidies on fertilizers and LPG can also strain government resources.
The government is also working towards improving management of fiscal deficits and earning extra money outside taxation. The sale of equity in PSUs by way of Offer for Sale is one such method which takes less time than raising taxes for funds.
However, the disinvestment and privatization exercises of significant strategic magnitude have been proceeding at a slow pace. Therefore, the OFS route has become an immediate and practical method of fund-raising for the government to monetize its stake.
Among the completed OFS transactions for the fiscal year 2026, BHEL, Coal India, Central Bank of India, NHPC, NLC India, GIC Re, IRFC, Cochin Shipyard, LIC and Hindustan Copper have been involved in stake sales, with one scheduled OFS by IRFC also included in the list. Proceeds and government stakes after OFS are obtained from DIPAM, while BHEL data are from press releases.
Bharat Heavy Electricals Ltd. saw the government sell 5.00% stake, comprising 3% base and 2% green-shoe, on February 11–12, 2026. The proceeds were around Rs. 4,400 crore, while the post-sale government stake was 0.6317.
Coal India Ltd. witnessed a 2.00% government stake sale, comprising 1% base and 1% green-shoe, on May 26, 2026. The government raised Rs. 5,542.36 crore, leaving a post-sale government stake of 0.6113.
Central Bank of India saw an 8.08% stake sale, comprising 4% base and 4% green-shoe, during May 22–25, 2026. The transaction generated Rs. 2,266.13 crore, while the government’s post-sale stake stood at 0.8119.
NHPC Ltd. witnessed a 6.01% stake sale, comprising 3% base and 3% green-shoe, on June 2–3, 2026. The government raised Rs. 4,357.36 crore and retained a 0.6139 stake.
NLC India Ltd. saw the government sell 2.73% stake, comprising 2% base and 0.73% green-shoe, on June 9–10, 2026. The transaction generated Rs. 1,223.57 crore, with the government retaining a 0.6947 stake.
General Insurance Corporation of India saw a 5.00% government stake sale, comprising 2% base and 3% green-shoe, on June 16–17, 2026. The government raised Rs. 3,090.47 crore, while its post-sale stake stood at 0.774.
Indian Railway Finance Corporation Ltd. witnessed a 2.00% stake sale, comprising 1% base and 1% green-shoe, on June 24–25, 2026. The proceeds stood at Rs. 2,081.27 crore, with the government’s post-sale stake at 0.8265.
Cochin Shipyard Ltd. saw a 5.04% stake sale, comprising 2.52% base and 2.52% green-shoe, on July 7–8, 2026. The transaction generated Rs. 1,711.24 crore, while the government’s post-sale stake was approximately 62.87%.
Life Insurance Corporation of India saw a 6.50% stake sale, comprising 2.50% base and 4.00% green-shoe, on August 4–5, 2026. The government raised Rs. 31,514.89 crore, leaving a post-sale government stake of 0.935.
Hindustan Copper Ltd. witnessed a 6.00% government stake sale, comprising 3% base and 3% green-shoe, on August 25–26, 2026. The transaction raised Rs. 3,041.27 crore, while the government’s post-sale stake was approximately 59.17%.
On the private-sector side, several companies have also used the Offer for Sale route to raise funds. These include East India Drums & Barrels, Eastern Silk Industries and Swan Defence & Heavy Industries. Other companies such as HMA Agro Industries and String Metaverse have also tapped the OFS route, highlighting the use of the mechanism by both public and private sector companies to raise capital through stake sales.
A PSU could become a potential OFS candidate when the government continues to hold a large stake, particularly when its ownership is significantly higher than the minimum level required for public shareholding. Companies with low public float may therefore attract attention for possible future stake dilution.
The government may also consider factors such as the company’s market capitalisation, trading liquidity, investor demand and broader disinvestment plans. PSUs with sufficient market liquidity can make it easier for the government to sell a sizeable stake through an OFS and raise funds without exiting its controlling position.
The next possible OFS candidates may be PSUs where the government retains a substantial stake, especially those with adequate market liquidity to facilitate such a sale. Stocks that have been heavily influenced by the government, have very good trading volume and have a larger free float may qualify for future OFS issuance as a way to generate more funds.
In the case of IRFC Limited, the government’s stake has declined from around 86% to 84% following the recent 2% OFS, with proceeds estimated at around Rs. 2,400 crore. Since the government continues to hold a substantial stake, investors could watch for further OFS or disinvestment announcements in the future.
In General Insurance Corporation of India, the government reduced its stake from 82.4% to 77.4% through a 5% OFS. Despite this dilution, government ownership remains high, meaning the stock could remain on investors’ radar for potential future stake sales.
In Central Bank of India Limited, the government’s holding declined from approximately 89.3% to 81.2% after an 8.08% OFS, through which around Rs. 2,266 crore was raised. With the government still owning more than 80%, further stake dilution could remain a key focus for investors.
Mazagon Dock Shipbuilders Ltd saw the government’s stake decline from around 84.8% to 81.2%, although no recent OFS is included in the available data. Given the still-high government ownership, investors may continue monitoring the defence PSU for any future stake-sale announcements.
In UCO Bank Ltd, the government currently owns around 91%, while public shareholding is only about 9.1%. The relatively low public float compared with the government’s ownership makes the stock an important candidate for investors to monitor for possible future government stake dilution.
In Punjab & Sind Bank, government ownership remains very high at around 93%, while public shareholding is approximately 6.2%. This large concentration of government ownership means investors could watch the bank for future measures aimed at increasing public shareholding, including a possible OFS.
In IDBI Bank, the government and LIC together hold approximately 81.5%, with the government holding around 33% and LIC around 48.5%. However, there is currently no official announcement of an OFS, and any strategic stake sale would be a separate development.
In NHPC, the government reduced its holding from approximately 67.4% to 61.4% through a 6.01% OFS, raising around Rs. 4,357 crore. Although the government remains the majority shareholder, the recent stake sale means investors may continue watching NHPC for any additional disinvestment activity.
Being on an OFS watchlist does not mean that another OFS has been announced or is certain to happen. It simply indicates that the government still holds a significant stake, making these stocks relevant to monitor for potential future stake-sale activity.
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