Fundraising through Offer for Sale (OFS) on Indian stock exchanges hits an all-time high in 2026, fuelled by LIC’s historic stake sale and an aggressive government divestment strategy amidst economic pressure from global crude prices and geopolitical tensions.
Fundraising through offers for sale on stock exchanges has climbed to a record in 2026, lifted by Life Insurance Corporation of India’s giant stake sale earlier this month and by a broader government push to lean more heavily on divestment. Business Standard reported that 20 companies have raised ₹62,730 crore across 23 OFS transactions so far this year, the highest amount ever collected through the mechanism since such data has been tracked.
More than 93% of that total, or ₹58,425.12 crore, came from state-owned companies. The government’s own disinvestment receipts have reached ₹52,716.02 crore, putting it close to two-thirds of its annual target of ₹80,000 crore for 2026-27, according to the report and figures from the Department of Investment and Public Asset Management. LIC’s ₹31,514.89 crore transaction is now the biggest OFS ever seen in Indian capital markets.
The surge has been helped by earlier stake sales in Central Bank of India and Coal India in May, which market participants said gave the Centre greater confidence to return to the route. Business Standard also said the government has been looking to raise money as higher crude prices, exacerbated by the US-Iran conflict and the closure of the Strait of Hormuz, have worsened pressure on the economy and on public finances.
The OFS route has also become a way to compare the government’s monetisation plans with investor appetite. Of the 20 companies that sold shares this year, more than half have posted negative returns over the past 12 months, with six of the 11 laggards coming from the public sector. Indian Railway Finance Corporation was the weakest PSU, down 29.66%, while Central Bank of India, Cochin Shipyard, General Insurance Corporation of India and LIC also fell over the period. At the other end of the table, String Metaverse dropped 61.53%, while Aanchal Ispat and Swan Defence & Heavy Industries posted large gains.
Deepak Jasani, an independent equity analyst, told Business Standard that OFS deals usually reflect a promoter’s need for cash or a view that the stock is fairly priced. In public-sector sales, he said, government-linked support can help underpin demand. Ajay Garg, chairman and managing director of Equiris Capital, said the headline figure is flattered by LIC’s exceptional size and that excluding it, the total would be less striking, though still among the strongest in 15 years.
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