India Sets ₹1.79 Trillion PSU IPO Goal by 2030

India aims to raise ₹1.79 trillion (about $20 billion) by 2029–30 through initial public offerings (IPOs) of stakes in state-run companies, according to a report released by NITI Aayog.

These IPOs will form part of a broader asset monetisation programme targeting $183.7 billion over the next four years. The second phase of the government’s asset monetisation drive follows the first plan, which raised ₹5.3 trillion by 2024–25, nearly 90% of its ₹6 trillion target.

The upcoming listings will span key sectors including railways, power, petroleum and natural gas, aviation and coal.

Why The Shift From Privatisation To Monetisation?

The government had earlier pursued outright privatisation of public sector companies. However, after failing to secure a full majority in the 2024 general elections, plans to privatise several state-run firms were deferred.

Rather, New Delhi has shifted to the sale of minority stakes and the monetisation of subsidiaries and assets. The funds are retained by the firms for reinvestment, reducing strain on government finances and allowing the companies to remain state-owned.

Although the government stopped setting specific annual divestment targets after 2024, stake sales and IPOs remain central to its strategy to narrow the fiscal deficit.

Which Sectors Will See IPOs?

The following sectors will see IPOs:

1. Railways

The government plans to divest stakes in seven railway companies through IPOs. This will help in raising ₹83,700 crore by 2030. Of this, ₹17,000 crore is targeted through stock market listings in the financial year beginning 1 April 2026.

2. Power

Subsidiaries of state-run power firms are expected to raise ₹31,000 crore over the next four years through listings.

3. Coal And Renewable Energy

Coal India subsidiaries and NLC India Limited's renewable energy assets are planned to raise ₹48,300 crore.

4. Aviation

The Airports Authority of India plans to sell its stake in one subsidiary and four airports operated through joint ventures with private partners.

5. Oil And Gas

The government plans to list GAIL GAS, a subsidiary of Gas Authority of India Limited (GAIL), in 2027-28, potentially raising around ₹31 billion.

What Does This Mean For Investors?

For investors, the government’s ₹1.79 trillion IPO roadmap signals a multi-year pipeline of large public sector listings. The IPOs will specifically focus on infrastructure and core sectors like railways, power, coal, gas and aviation. Businesses in these areas could also attract strong institutional interest if valuations and governance standards are attractive.

Simultaneously, investor interest will be largely subject to pricing discipline, transparency on the capital deployment, and the operational performance of such subsidiaries. Since proceeds from asset monetisation remain with the companies for reinvestment, future earnings growth and return on capital will be critical factors.

India’s capital markets may see a steady flow of PSU listings over the next few years, offering selective opportunities but requiring investors to carefully evaluate balance sheets, policy risks, and execution capabilities.

Sources:

Business Standard
The Hindu
Fortune India