The Government of India is preparing to sell minority stakes in nearly six state-owned enterprises, according to Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM), in an interview with CNBC-TV18. The move is part of the broader disinvestment strategy for FY26.
Banks and Insurers in Focus
Reports suggest that five public sector banks, including UCO Bank and Bank of Maharashtra, could be part of the stake sale programme. In addition, the government is required to reduce its holding in Life Insurance Corporation of India (LIC) to comply with minimum public shareholding norms prescribed by SEBI.
IPOs in Natural Resources and Other Sectors
Chawla indicated that an IPO of a state-owned firm in the natural resources sector will be launched during FY26. The offering may involve either the parent company or a subsidiary. Both ONGC and NHPC are exploring listings of their renewable energy arms.
Beyond natural resources, new IPOs in the insurance and defence sectors are also under consideration, broadening the scope of disinvestment.
Offers for Sale and Strategic Sales
The government began FY26 with limited stake sales but temporarily paused activity due to market conditions. With improved stability, it now plans to resume offers for sale (OFS), minority stake sales, and one or two strategic disinvestments.
The much-awaited strategic disinvestment of IDBI Bank is also on track for completion within the current financial year.
Budget Targets and Dividend Expectations
The Union Budget for FY26 set a target of ₹47,000 crore under miscellaneous capital receipts, which includes proceeds from equity and asset monetisation beyond just disinvestment. Chawla emphasised that actual outcomes will depend on market demand and investor appetite.
In addition, the government expects to collect ₹1.2 lakh crore in dividends from public sector undertakings (PSUs), supplementing revenues from disinvestment.
Summary:
The government plans to sell minority stakes in around six PSUs, including select public sector banks and LIC, as part of its FY26 disinvestment strategy. An IPO in the natural resources sector is expected this year, alongside possible offerings in insurance and defence. With targets of ₹47,000 crore in receipts and ₹1.2 lakh crore in dividends, the roadmap includes OFS, minority stake sales, and strategic deals such as IDBI Bank’s disinvestment, keeping banks, insurers, and energy companies in focus.
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