The government has finalized plans for phased share sales in major public sector enterprises including Coal India Ltd (CIL), Life Insurance Corporation (LIC), the Indian Overseas Bank (IOB), and the Indian Railway Finance Corporation (IRFC) to achieve a disinvestment target of ₹80,000 crore in FY27. According to NDTV Profit, the offers for sale will be calibrated with stable market conditions as the government wants to avoid any volatility before proceeding with share offloading. The government may dilute up to 2 per cent stake in Coal India through an offer for sale, while an LIC OFS is likely in the second quarter between July and September. Officials are expected to monitor market conditions closely and proceed with the stake sales only when the market remains stable, aiming to secure better valuations and stronger investor participation.
The government has set an ambitious target of realising ₹80,000 crore through disinvestment and monetisation of assets in FY27. As reported by multiple sources, this target is about 135 per cent higher than the revised estimate of ₹33,837 crore for FY26, relying on big-ticket strategic sales and Offer for Sale (OFS) pipelines in major public sector entities to bolster non-tax revenues. The government plans to rely on large stake sales and strategic asset monetisation to boost non-tax revenue collections, with the Centre's strategy aimed at helping the government secure better valuations and stronger investor participation.
The government has already been active on the divestment front, having divested a 2.17 per cent stake in the IOB in December 2025 and a 2 per cent stake in the IRFC in February 2026. According to multiple reports, besides the government announced an 8 per cent stake sale in Central Bank of India, where the non-retail offer for sale portion was subscribed 2.35 times. A senior government official stated that the government has a 'very strong asset monetisation plan' backed by a clearly defined pipeline. The government has already completed several stake sales in recent months, demonstrating its commitment to the divestment strategy.
At the post-budget press conference, Finance Minister Nirmala Sitharaman had stated that the government will continue to pursue all disinvestment proposals approved by the cabinet, signalling continuity in the asset-sale strategy despite slower progress in 2025-26. A senior government official emphasized that the government has a 'very strong asset monetisation plan' with a clearly defined pipeline, stating that "a pipeline is prepared, and the government hopes to reap the dividends from that." The government prepares its pipeline monetising assets in accordance with the capacity of the stock market to absorb the shares, with further stake dilution in the IOB and the IRFC under active consideration, though the timing depends on market stability.
