Govt Plans to Sell Minority Stakes in Around 6 State-Owned Firms: DIPAM Secretary

The government is preparing to sell minority stakes in around six state-run companies, said Secretary of the Department of Investment and Public Asset Management (DIPAM), Arunish Chawla, to CNBC-TV18.

Banks and Insurers Mentioned Earlier

As per the news reports, 5 public sector banks could be part of the exercise, including UCO Bank and Bank of Maharashtra. The government is also required to reduce its shareholding in Life Insurance Corporation of India (LIC) to comply with the minimum public shareholding rules set by the regulator.

IPO in Natural Resources

Chawla said that an initial public offering (IPO) of a state-owned firm in the natural resources sector will be launched in the current financial year. The IPO may involve a company or one of its subsidiaries. ONGC and NHPC have been exploring listings of their renewable energy arms.

Offers for Sale and Strategic Sales

According to Chawla, the government began the year with a few stake sales but paused activity for a period. With more stable market conditions, new offers for sale (OFS), minority stake sales and one or two strategic disinvestments are being planned.

Budget Estimates

The Union Budget for FY26 included a target of ₹47,000 crore under miscellaneous capital receipts. Officials have clarified that this figure covers proceeds from equity and asset management, not only disinvestment. The final outcome will depend on demand and other factors.

IDBI Bank Disinvestment

Chawla added that the strategic disinvestment of IDBI Bank is expected to be completed in this financial year. The government also expects to collect over ₹1.2 lakh crore in dividends from state-owned companies.

Insurance and defence are among the sectors where new IPOs may be launched. Chawla said the government is aiming to meet and possibly exceed its current disinvestment target.

Read more: Govt Selects Goldman Sachs as Sole Banker for 4 PSBs Stake Sale!

Conclusion

Minority stake sales, IPOs and strategic disinvestments remain central to the government’s divestment plan for FY26, with banks, insurers and energy firms in focus.

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