The Indian government is increasingly relying on smaller, market-driven stake sales in state-run companies to accelerate its disinvestment goals, with over ₹52,000 crore raised in the first four months of FY27 through minority offerings, signalling a strategic shift from large privatisations.
India’s government is leaning harder on smaller, market-led stake sales in state-run companies as it tries to meet an ambitious disinvestment target for the financial year. According to the materials supplied, the shift has already delivered more than ₹52,000 crore in receipts in the first four months of FY27, with the Life Insurance Corporation of India’s share sale doing much of the heavy lifting. That puts the administration within striking distance of its ₹80,000 crore goal.
The change in emphasis marks a clear move away from big-ticket privatisations and towards repeated minority sales through the Offer for Sale route. LiveMint reported that the Department of Investment and Public Asset Management is evaluating another round of listed central public sector enterprises where the state still holds more than 60%, allowing it to raise cash while keeping control. The appeal is straightforward: OFS transactions are quicker to execute, face fewer regulatory obstacles and can be timed to suit market conditions.
Recent sales show how that model is working in practice. The New Indian Express reported that the government had raised ₹18,561 crore from disinvestment in the current financial year, already ahead of last year’s total, with all the transactions so far completed through OFS. DIPAM’s own minority stake sale page lists a set of companies including Coal India, LIC, IRFC, NHPC, NLC India and others, with proceeds of ₹20,272.40 crore tied to those sales. Further deals are expected to keep the pipeline moving.
For investors, the strategy has a mixed effect. More frequent sales can improve liquidity and broaden public ownership, but they can also create supply pressure when large blocks are placed on the market, often at a discount to the trading price. As several reports note, the government is still expected to retain majority ownership in most cases, meaning these transactions are less about changing control and more about raising money efficiently while market conditions remain favourable.
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