Government Collects Record Amount of ₹25,491 Crore in 2026 Through OFS Route

As per the data from Prime Database, the government has collected about ₹25,491 crore from offer for sale (OFS) transactions in listed PSUs until now in 2026.

The fundraising has come from stake sales in eight listed state-run companies and reflects a stronger push toward market-based divestment as the government looks to support fiscal resources amid higher expenditure commitments and elevated crude oil prices.

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PSU Divestment Drives Fund Mobilisation

The latest figure is second only to 2015, when the government raised around ₹35,291 crore through stake sales in five listed PSUs.

Among the companies where the government has diluted its holdings this year are Bharat Heavy Electricals (BHEL), Indian Railway Finance Corporation (IRFC), Central Bank of India, Coal India, NHPC, NLC India and General Insurance Corporation. These transactions have formed the bulk of OFS activity in the market during the year.

Across both public and private sector companies, 24 listed firms have collectively raised nearly ₹29,445 crore through OFS issues in 2026. The amount is already close to the ₹30,178 crore mobilised by 28 companies in 2024 and remains below the all-time high of ₹35,566 crore raised by 19 firms in 2015.

Private sector companies that tapped the OFS route this year include East India Drums & Barrels, Eastern Silk Industries, Swan Defence & Heavy Industries, HMA Agro Industries and String Metaverse.

Mixed Stock Performance After OFS

Most PSU stocks have shown limited movement following their OFS launches despite volatility in broader markets. BHEL has emerged as the strongest performer, trading about 62% above its OFS floor price. Both Coal India and NHPC have increased by nearly 9% each from their respective OFS issue prices, whereas the Central Bank of India has gained 6%.

Similarly, General Insurance Corporation has moved up by nearly 4%, and NLC India by a meager 1%. In contrast, IRFC remains around 3% below its OFS floor price from the February issue.

Market participants note that OFS transactions often lead to temporary pressure on share prices before the issue, as investors reposition portfolios to participate in discounted offerings.

Government Focuses on Incremental Stake Reduction

The government has mainly resorted to sale of stakes that range from 1% to 2% to increase public holding in some PSUs.
It is possible that an increased level of free float would aid in improving liquidity and thus in getting listed on global stock indices, attracting passive investment flows from foreign sources.

Strategic disinvestment activities have not seen much success, leading to the OFS route becoming more popular in raising finances.

The funds raised through this process are likely to be helpful in meeting spending obligations in the current fiscal year.