The government is planning stake sales in Hindustan Zinc, Hindustan Copper, Mazagon Dock Shipbuilders and IRCTC in FY27.
Merchant bankers have already been appointed, with these two transactions being treated as immediate priorities.
The planned sales follow LIC’s 6.5% stake sale and come as FY27 capital receipts have reached Rs 61,638.61 crore.
More PSU Stakes Up For Grabs in FY27: Govt Targets Hindustan Zinc, Copper, IRCTC, MDL
After LIC’s major stake sale, the government is preparing fresh offer-for-sale transactions in four public sector companies, with Hindustan Zinc and Hindustan Copper among the immediate priorities
Summary
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The government is preparing fresh offer-for-sale transactions across four public sector enterprises for the current financial year. The planned stake sales include about 1.5 per cent in Hindustan Zinc, alongside roughly 5 per cent each in Hindustan Copper, Mazagon Dock Shipbuilders and Indian Railway Catering and Tourism Corporation.
Hindustan Zinc and Hindustan Copper remain the immediate focus areas, with merchant bankers already selected to manage the share sales.
"Hindustan Zinc and Hindustan Copper are definitely among the priority companies. These two transactions need to be taken up on priority, and merchant bankers have already been appointed," a person directly aware of the development told Moneycontrol.
Banker Appointments and Execution
Over the past month, authorities have finalised five merchant banking mandates. These appointments cover Hindustan Zinc, Hindustan Copper, MDL, IRCTC and an additional unnamed company.
The exact sequence for launching these market offerings remains confidential.
The execution timeline is not shared in advance, and appointed bankers typically receive notification just a day or two before the actual launch, the report said citing the source.
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The planned divestment sizes vary across the selected firms. While the 1.5 per cent equity dilution proposed for Hindustan Zinc is proportionally smaller, the firm's massive market capitalisation ensures the deal will carry substantial value.
In contrast, the government targets a larger 5 per cent stake reduction in Hindustan Copper, MDL and IRCTC, though final figures will depend on prevailing market conditions closer to the launch date, the person said.
Active Disinvestment Fiscal Year
This upcoming phase follows the recent 6.5 per cent stake sale in Life Insurance Corporation of India—the largest such transaction this fiscal—at a floor price of Rs 382 per share. The government has maintained a steady pace of divestments throughout financial year 2026-27.
Earlier market transactions this fiscal included stake dilutions in Coal India, NHPC, General Insurance Corporation, Central Bank of India and Indian Railway Finance Corporation.
Total capital receipts for the current fiscal year have reached Rs 61,638.61 crore, according to data from the Department of Investment and Public Asset Management, as reported by Moneycontrol.
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This includes Rs 52,716.02 crore from disinvestment proceeds, Rs 6,366.93 crore generated through asset monetisation and Rs 2,555.66 crore collected as dividends.