Shares of multiple railway public sector undertakings remained in focus after reports indicated that the ministry of railways is preparing stake dilution plans in several listed railway companies through offer-for-sale (OFS) transactions during FY27 under the government’s broader National Monetisation Pipeline (NMP 2.0) strategy.
According to The Mint report, the railways ministry is considering dilution of 5% to 10% stakes in 6 listed railway PSUs, while a separate listed railway company could see dilution of around 2% to 3%.
The companies likely to be part of the monetisation exercise include Indian Railway Catering and Tourism Corporation, Indian Railway Finance Corporation, Ircon International, Rail Vikas Nigam Limited, RITES Limited, RailTel Corporation of India and Container Corporation of India.
In the case of Container Corporation of India (Concor), the government’s dilution is expected to remain limited to 2% to 3% as authorities intend to retain ownership above the 51% threshold. The government currently holds 54.80% stake in Concor.
Officials indicated that the broader strategy is aimed at unlocking value from railway assets while continuing to retain management control across key public sector entities.
Based on prevailing market valuations, a 5% stake sale across 6 railway PSUs could potentially generate ₹15,000 crore to ₹20,000 crore for the government.
If the dilution size is increased towards 10%, the overall proceeds could rise substantially higher, although the final size and timing of transactions will depend on investor demand, valuations and market conditions.
The monetisation initiative forms part of the railways ministry’s assigned target of ₹2.62 trillion under the second phase of the National Monetisation Pipeline covering the 2026-2030 period.
The latest proposal follows the government’s recent sale of a 2% stake in IRFC earlier this month through the OFS route.
The proposed stake sales come alongside continued investment by Indian Railways in dedicated freight corridors, station redevelopment, logistics integration, rolling stock modernisation and expansion of Vande Bharat train services.
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The railways ministry is preparing a large-scale monetisation exercise involving listed railway PSUs as the government seeks to recycle capital for future infrastructure expansion while retaining strategic control over key railway entities.
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Published on: May 14, 2026, 10:26 AM IST
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