The Government of India has mobilised over ₹25,000 crore through stake sales in public sector undertakings (PSUs) via the Offer for Sale (OFS) route in 2026, marking the highest fundraising through PSU OFS issues in more than a decade. The proceeds are expected to support government expenditure and fiscal management while deepening public participation in PSU ownership.
Key Highlights
✅ Government raises ₹25,491 crore through PSU stake sales in 2026.
✅ Highest PSU OFS fundraising since 2015.
✅ Eight listed PSUs participated in OFS transactions this year.
✅ BHEL emerged as the best-performing PSU stock post-OFS, gaining 62%.
New Delhi, June 25: The Government of India has raised more than ₹25,000 crore through stake sales in public sector undertakings (PSUs) via the Offer for Sale (OFS) mechanism during 2026, making it the most successful PSU disinvestment exercise in over a decade.
According to market data compiled by Prime Database, the Centre mobilised approximately ₹25,491 crore by diluting stakes in eight listed public sector companies during the year. This represents the highest amount raised through PSU OFS transactions since 2015, when the government generated nearly ₹35,291 crore through stake sales in five listed companies.
The strong fundraising momentum underscores the government’s continued focus on strategic disinvestment, capital market participation and efficient resource mobilisation to support public expenditure and fiscal priorities.
When private sector issuances are also taken into account, a total of 24 listed companies have collectively raised around ₹29,445 crore through the OFS route in 2026. The figure is already approaching the ₹30,178 crore mobilised by 28 companies in 2024 and is not far behind the all-time OFS fundraising record of ₹35,566 crore achieved by 19 companies in 2015.
Among the public sector enterprises that have tapped the OFS market this year are Bharat Heavy Electricals Limited (BHEL), Indian Railway Finance Corporation (IRFC), Central Bank of India, Coal India Limited, NHPC Limited, NLC India Limited and General Insurance Corporation of India (GIC Re), among others.
The government’s OFS programme forms a crucial part of its broader asset monetisation and disinvestment strategy. By reducing stakes in listed PSUs, the Centre seeks to unlock value, improve market liquidity, broaden shareholder participation and generate resources for developmental expenditure.
Market analysts noted that the proceeds generated from early-year stake sales could help support higher government spending requirements related to food subsidies, fertiliser subsidies and LPG cooking gas support programmes, while also contributing to fiscal consolidation efforts.
Despite market volatility caused by foreign institutional investor (FII) outflows, geopolitical developments and fluctuations in global crude oil prices, investor interest in PSU OFS issues remained relatively strong. However, analysts observed that PSU stocks generally recorded mixed post-OFS performance, with gains varying significantly across sectors and companies.
Among the recently divested public sector companies, BHEL emerged as the strongest performer, trading approximately 62 percent above its OFS floor price. The performance reflects renewed investor optimism surrounding India’s capital expenditure cycle, infrastructure development and power equipment demand.
In comparison, Central Bank of India has gained around 6 percent from its OFS issue price, while Coal India Limited and NHPC Limited have delivered gains of approximately 9 percent each. General Insurance Corporation of India (GIC Re) and NLC India Limited have registered gains of around 4 percent and 1 percent, respectively.
Meanwhile, Indian Railway Finance Corporation (IRFC) remains slightly below its February OFS floor price, trading around 3 percent lower than the issue level.
The successful fundraising through PSU OFS transactions highlights sustained investor confidence in government-owned enterprises and reflects the growing maturity of India’s capital markets. It also demonstrates the government’s ability to leverage market mechanisms for resource mobilisation without significantly disrupting market stability.
With several strategic disinvestment and asset monetisation initiatives under consideration, market participants expect PSU stake sales to remain an important component of the government’s financing strategy in the coming years.
Conclusion
The government’s achievement of raising over ₹25,000 crore through PSU OFS deals in 2026 marks a significant milestone in India’s disinvestment programme. The strong fundraising performance not only strengthens fiscal resources but also enhances public participation in key state-owned enterprises. As capital markets deepen and investor interest in PSU stocks evolves, the OFS route is likely to remain a critical tool for efficient resource mobilisation and value creation.
