FY27 Divestment: Government Plans Stake Sale in Coal India, LIC, IOB, and IRFC

The Centre is preparing a fresh pipeline of Offer for Sale (OFS) transactions involving several public sector enterprises as part of its FY27 disinvestment and asset monetisation programme, as per The NDTV Profit report. 

With stake dilution plans under evaluation across multiple state-owned companies while the government closely tracks market conditions before launching the proposed transactions. 

Coal India, LIC, IOB And IRFC Among Key Candidates 

The companies currently under consideration include Coal India Limited, Life Insurance Corporation of India, Indian Overseas Bank and Indian Railway Finance Corporation Limited. 

The proposed transactions are expected to be spread across the first 2 quarters of FY27, although execution timelines may vary depending on market stability and volatility levels. 

Among the planned stake sales, the government is considering dilution of up to 2% in Coal India through an OFS route. 

An OFS transaction in LIC is also being evaluated for the second quarter of FY27, which falls between July and September.Additional stake dilution plans in Indian Overseas Bank and IRFC are under active consideration as well. 

Government Targets ₹80,000 Crore Through Asset Monetisation 

The proposed OFS pipeline forms part of the government’s broader ₹80,000 crore asset sale and monetisation target for FY27. The Centre has already undertaken multiple stake sales in recent months as part of its disinvestment strategy. 

In December 2025, the government diluted a 2.17% stake in Indian Overseas Bank, followed by a 2% stake sale in IRFC during February 2026. 

More recently, the government announced an 8% stake sale in Central Bank of India.The non-retail portion of that OFS transaction received subscriptions worth 2.35 times the shares on offer. 

Read More: RBI Net-Sold Record $53.13 Billion in FY26; Highest Net Dollar Sale in a Financial Year! 

Conclusion 

The government’s upcoming OFS pipeline signals continued momentum in India’s FY27 disinvestment programme as authorities look to balance asset monetisation goals with prevailing market conditions.   

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