Govt Likely To Launch OFS In Hindustan Zinc, Hindustan Copper, Mazagon Dock, IRCTC In FY27

The government is likely to sell part of its holdings in Hindustan Zinc, Hindustan Copper, Mazagon Dock Shipbuilders and IRCTC through Offer for Sale transactions in FY27. The proposed sales could cover around 1.5% of Hindustan Zinc and about 5% each of the other three companies, Moneycontrol reported, citing people aware of the development.

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Hindustan Zinc, Hindustan Copper Lead The List

Moneycontrol reported that Hindustan Zinc and Hindustan Copper are currently among the priority names, with merchant bankers already appointed for the proposed transactions.

The government has appointed bankers for five potential stake sales over the past month. The appointments cover Hindustan Zinc, Hindustan Copper, Mazagon Dock Shipbuilders, IRCTC and another company.

The sequence of the proposed OFS transactions has not been fixed. According to the report, merchant bankers may also receive notice of a transaction shortly before its launch.

For investors tracking the Hindustan Zinc share price and Hindustan Copper share price, the proposed sales could increase the amount of shares available in the market, although the final size and timing will depend on market conditions.

Hindustan Zinc Sale Could Be Large In Value

The proposed 1.5% stake sale in Hindustan Zinc is smaller than the 5% transactions being considered for Hindustan Copper, Mazagon Dock Shipbuilders and IRCTC. However, Hindustan Zinc’s larger market capitalisation means even a smaller percentage sale could represent a sizeable transaction.

The government is also considering around 5% stake sales in Hindustan Copper, Mazagon Dock Shipbuilders and IRCTC. The final quantum for each transaction has not been confirmed.

The proposed transactions follow the government’s recent Offer for Sale in Life Insurance Corporation of India. Earlier this month, the Centre sold a 6.5% stake in LIC at a floor price of ₹382 per share.

Government Steps Up Disinvestment Activity

The government has already carried out several stake-sale transactions in FY27, including those involving Coal India, NHPC, General Insurance Corporation, Central Bank of India and Indian Railway Finance Corporation.

Data from the Department of Investment and Public Asset Management showed total receipts of ₹61,638.61 crore in 2026-27 so far. This includes ₹52,716.02 crore from disinvestment, ₹6,366.93 crore from asset monetisation and ₹2,555.66 crore in dividend receipts.

For the Mazagon Dock share price and IRCTC share price, the proposed OFS plans add another potential government stake sale to the list of developments investors will track.

The Finance Ministry has been approached for its comments on the proposed transactions. The timing, offer size and pricing of the four potential OFS issues remain subject to further decisions by the government.