Govt Plans Share Sale In LIC, Coal India, IRFC & IOB, Big FY27 Disinvestment Push Targets ₹80,000 Crore

Mumbai: The Central government is preparing another round of stake sales in major public sector companies as part of its FY27 disinvestment plan.

According to a report, the government has shortlisted Coal India, Life Insurance Corporation of India, Indian Overseas Bank and Indian Railway Finance Corporation for share sales through Offer for Sale (OFS) routes.

The planned stake sales are expected to take place in phases during the first two quarters of FY27.

Govt To Time Sales Carefully

The report said the government wants to avoid stock market volatility before launching the offers.

Officials are expected to monitor market conditions closely and proceed with the stake sales only when the market remains stable.

This strategy is aimed at helping the government secure better valuations and stronger investor participation.

Coal India And LIC In Focus

Among the planned transactions, the government may sell up to a 2 percent stake in Coal India through an OFS.

A stake sale in LIC is also likely during the July-September quarter of FY27.

The government is also actively considering further dilution of stakes in Indian Overseas Bank and IRFC.

However, the final timing of these sales will depend on market stability.

Big FY27 Revenue Target

The Centre has set a target of raising Rs 80,000 crore through disinvestment and asset monetisation in FY27.

This target is significantly higher than the revised FY26 estimate of Rs 33,837 crore.

The government plans to rely on large stake sales and strategic asset monetisation to boost non-tax revenue collections.

Govt Already Active In Stake Sales

The government has already completed several stake sales in recent months.

It sold a 2.17 percent stake in Indian Overseas Bank in December 2025 and a 2 percent stake in IRFC in February 2026.

The Centre had also announced an 8 percent stake sale in Central Bank of India, where the non-retail portion received strong investor demand.

Finance Minister Nirmala Sitharaman earlier said the government will continue with approved disinvestment plans and maintain a strong asset monetisation pipeline in the coming years.