The Centre is signalling that its disinvestment programme is likely to continue through the rest of FY27, with Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla saying that the government is confident of achieving the ₹80,000 crore disinvestment target for the financial year.
The government has already mobilised around ₹52,000 crore, including proceeds from the LIC offer for sale and the recently completed Hindustan Copper stake sale.
Chawla said on NDTV Profit that the government is still committed to completing the disinvestment programme and achieving the targeted results.
“We are working hard, and we will achieve the target, and we will continue to work hard,” Chawla said in a statement Wednesday.
There are also suggestions that the Centre might seek further stake sales in the next few months, although the government has not disclosed which company might be next.
More OFS Transactions Could Follow
Hindustan Copper OFS seems unlikely to be a one-off deal.
When asked about the pipeline of large OFS deals, Chawla said, “Good habits once built up last,” while indicating the government would continue to come to the market with offers.
He did not say when the next company would be or when a transaction would be made.
The comments are important for investors because additional government OFS transactions could potentially bring more public-sector companies into focus in the stock market.
An OFS allows existing shareholders, including the government, to sell shares directly to investors through the stock exchange mechanism.
₹80,000 Crore FY27 Target
The Centre has set a ₹80,000 crore disinvestment target for FY27.
With almost ₹52,000 crore already mobilised, the government has achieved a lot towards the target. The rest of the money could be raised by additional stake sales based on market conditions and the government’s transaction pipeline.
Chawla underlined that this government is not only concerned with achieving a numerical target but also ensuring transactions deliver the desired outcomes.
This suggests that future stake sales may depend on market conditions, investor appetite, and government targets for firms in the public sector.
DIPAM Strengthens Market Monitoring
The government also has strengthened its internal market-monitoring capabilities.
Chawla said DIPAM now has a market research unit as well as an internal operations room called “Kurukshetra,” which is used to assess market conditions before transactions are launched.
The government does consider market conditions when deciding when and how to execute stake sales, according to the DIPAM secretary.
Such monitoring could be particularly important for large OFS transactions because the timing of a share sale can influence investor participation, pricing, and the overall proceeds generated for the government.
Hindustan Copper Stake Falls to 60%
Hindustan Copper’s transaction will reduce the government’s stake from 66% to 60% in the company.
Chawla said the government intends to keep its holding at around this level.
The decision also leaves Hindustan Copper with room to raise capital from the market in the future.
This is critical as the mining company is going to have to invest heavily in expansion, technology, and other capital-intensive activities. Retaining a 60% government share allows the Centre to keep majority ownership and will make it easier for the company to access capital markets.
What More OFS Deals Could Mean for Investors
The government’s expectation of further OFS transactions could keep several public-sector stocks on investors’ radar.
Potential stake sales can give the market more shares to sell and might affect the market's short-run trading sentiment. At the same time, successful disinvestment transactions can improve market liquidity and help the government raise resources.
As investors, the key factors to watch will be the identity of the next company, the size of the proposed stake sale, the floor price, investor demand, and broader market conditions at the time of the transaction.
With around ₹52,000 crore already mobilised against the ₹80,000 crore FY27 target, the government has a significant portion of its target covered. If the Centre continues with market offers during the remainder of the financial year, the disinvestment programme could remain an important theme for Indian equity investors.
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