Government Achieves 78% of FY27 Disinvestment and Asset Monetisation Target in 5 Months

The government has raised ₹62,124 crore so far in FY27 through disinvestment and asset monetisation. This is around 78% of the ₹80,000 crore target set for the entire financial year. 

The government has raised the money mainly by selling minority stakes in public sector companies and through asset monetisation. 

₹55,757 Crore From Disinvestment 

The government has received ₹55,757 crore through disinvestment so far this year. 

The amount includes stake sales in nine public sector companies, including big names such as Life Insurance Corporation of India (LIC) and Coal India. 

The government has also received money from the strategic sale of Indian Medicines Pharmaceuticals Corporation and remittances from SUUTI. 

LIC Stake Sale Brings in Most Money 

The biggest amount came from the government's 6.5% stake sale in LIC. 

The sale brought around ₹31,515 crore, which makes up more than half of the total disinvestment money raised so far. 

More Money From NHPC and Hindustan Copper 

A 6.01% stake sale in NHPC brought around ₹4,357 crore to the government. 

Earlier this week, the government also sold a 6% stake in Hindustan Copper, raising around ₹3,041 crore. 

Other companies where the government sold shares include Central Bank of India, NLC India, GIC, IRFC and Cochin Shipyard. 

₹6,367 Crore From Asset Monetisation 

Apart from selling shares in public sector companies, the government has also raised money through asset monetisation. 

It received ₹6,367 crore through InvITs, taking the total amount raised through disinvestment and asset monetisation to ₹62,124 crore. 

IDBI Bank Sale Still on the Table 

The government is also looking to sell its stake in IDBI Bank. 

An earlier attempt to sell the bank did not work out, but the government has now received revised bids from Emirates NDB of Dubai and Fairfax Financial Holdings, led by Prem Watsa. 

If the sale goes through, it could provide another significant amount to the government. 

Why Is the Government Raising More Money? 

The government's focus on disinvestment and asset monetisation comes at a time when there are concerns that government spending could be higher than expected. 

Higher energy and fertiliser import bills are putting pressure on government finances. 

How Has Disinvestment Performed in Earlier Years? 

The government stopped setting a separate disinvestment target from the Revised Estimate for FY24. Instead, disinvestment and other capital receipts are included under Miscellaneous Capital Receipts. 

Read More: Fino Payments Bank Share Price in Focus; Receives RBI Approval to Extend Interim CEO Tenure! 

Conclusion 

The government has already achieved around 78% of its ₹80,000 crore FY27 target in just five months. LIC's stake sale contributed the biggest share of the money, while asset monetisation added another ₹6,367 crore. The proposed IDBI Bank sale could further increase the government's capital receipts if it goes through. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.