Four PSU Stake Sales Likely This Fiscal, Hindustan Zinc And Hindustan Copper Top Priority

The government is expected to launch fresh Offer for Sale transactions in four public sector undertakings during the current fiscal year, with plans to sell around 1.5% in Hindustan Zinc and roughly 5% each in Hindustan Copper, Mazagon Dock Shipbuilders and IRCTC, according to sources.

Hindustan Zinc and Hindustan Copper are understood to be at the top of the priority list. Merchant bankers have already been appointed for both transactions, and sources said these two deals are expected to be taken up first.

Banker Appointments Signal Larger Pipeline

The development follows a flurry of banker appointments over the past month, with five separate appointments covering Hindustan Zinc, Hindustan Copper, Mazagon Dock Shipbuilders, IRCTC and one additional company, indicating that the government is preparing a broader set of stake sales for the remainder of the fiscal year. According to sources, the exact sequence in which these transactions will be launched has not been fixed or shared in advance, with the bankers managing the deals often informed of an actual launch only a day or so ahead of time.

Hindustan Zinc Smaller In Percentage But Sizeable In Value

While the proposed stake sales vary in scale, Hindustan Zinc's planned 1.5% sale is smaller in percentage terms compared with the others, though the company's large market capitalisation means the transaction would still represent a sizeable deal in absolute value. Hindustan Copper, meanwhile, is looking at a 5% sale, broadly in line with what is being planned for Mazagon Dock Shipbuilders and IRCTC, though the final size of each transaction will depend on prevailing market conditions closer to launch, according to sources.

Follows LIC's Large Stake Sale Earlier This Month

This latest round of planned transactions comes after the government completed an Offer for Sale in Life Insurance Corporation of India earlier this month, its largest stake sale of the fiscal year so far, in which it sold a 6.5% stake at a floor price of ₹382 per share. With the LIC transaction concluded, the government is now expected to move to the next set of companies in its disinvestment pipeline.

FY27 Sees Steady Run Of Stake Sales

FY27 has already witnessed a consistent stream of Offer for Sale and stake-sale transactions, including in Coal India, NHPC, General Insurance Corporation, Central Bank of India and Indian Railway Finance Corporation, in addition to LIC.

The latest round of banker appointments for Hindustan Zinc, Hindustan Copper, Mazagon Dock Shipbuilders and IRCTC suggests the government intends to maintain this pace through the remainder of the fiscal year.

According to data from the Department of Investment and Public Asset Management, the government has mobilised total receipts of ₹61,638.61 crore for 2026-27 so far, comprising ₹52,716.02 crore from disinvestment, ₹6,366.93 crore from asset monetisation and ₹2,555.66 crore from dividend receipts.

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