The government is likely to initiate new Offer for Sale (OFS) transactions in four public sector undertakings during the current financial year as it continues its disinvestment programme.
According to a report by Moneycontrol, the proposed stake sales could involve around 1.5% in Hindustan Zinc and approximately 5% each in Hindustan Copper, Mazagon Dock Shipbuilders (MDL) and IRCTC.
Hindustan Zinc, Hindustan Copper among priority OFS candidates
Hindustan Zinc and Hindustan Copper are expected to be the first companies considered for the stake-sale exercise. Merchant bankers have already been appointed for these transactions, sources said.
The government’s recent appointment of bankers for multiple companies indicates plans for a broader round of divestment activities. In the past month, merchant bankers have been appointed for Hindustan Zinc, Hindustan Copper, MDL, IRCTC and another company.
However, the exact sequence of the OFS launches has not been finalised. Even the appointed bankers are usually informed about the launch shortly before the transaction begins, Moneycontrol reported.
The size of the proposed stake sales will vary across companies. Although the percentage stake planned in Hindustan Zinc is lower at around 1.5%, the company’s large market capitalisation means the transaction could still generate substantial proceeds.
For Hindustan Copper, MDL and IRCTC, the government is considering stake sales of around 5% each, though the final quantum could change depending on market conditions at the time of launch.
Government maintains disinvestment momentum in FY27
The proposed transactions follow the government’s recent OFS in Life Insurance Corporation of India (LIC), which was the largest stake sale of the financial year so far. The government sold a 6.5% stake in LIC at a floor price of Rs 382 per share.
The government has already carried out several stake-sale transactions in FY27, including in Coal India, NHPC, General Insurance Corporation, Central Bank of India and Indian Railway Finance Corporation.
