The Centre mobilised approximately Rs 25,491 crore by diluting stakes in eight listed public sector companies during the year. This represents the highest amount raised through PSU OFS transactions since 2015, when the government generated nearly Rs 35,291 crore through stake sales in five listed companies.

The strong fundraising momentum underscores the government’s continued focus on strategic disinvestment, capital market participation and efficient resource mobilisation to support public expenditure and fiscal priorities.

A total of 24 listed companies have collectively raised around Rs 29,445 crore through the OFS route in 2026 when private sector issuances are also taken into account. The figure is already approaching the Rs 30,178 crore mobilised by 28 companies in 2024 and is not far behind the all-time OFS fundraising record of Rs 35,566 crore achieved by 19 companies in 2015.

Among the public sector enterprises that have tapped the OFS market this year are Bharat Heavy Electricals Limited (BHEL), Indian Railway Finance Corporation (IRFC), Central Bank of India, Coal India Limited, NHPC Limited, NLC India Limited and General Insurance Corporation of India (GIC Re), among others.

The government’s OFS programme forms a crucial part of its broader asset monetisation and disinvestment strategy. By reducing stakes in listed PSUs, the Centre seeks to unlock value, improve market liquidity, broaden shareholder participation and generate resources for developmental expenditure.

Market analysts noted that the proceeds generated from early-year stake sales could help support higher government spending requirements related to food subsidies, fertiliser subsidies and LPG cooking gas support programmes, while also contributing to fiscal consolidation efforts.

Despite market volatility caused by Foreign Institutional Investor (FII) outflows, geopolitical developments and fluctuations in global crude oil prices, investor interest in PSU OFS issues remained relatively strong. However, analysts observed that PSU stocks generally recorded mixed post-OFS performance, with gains varying significantly across sectors and companies.

Among the recently divested public sector companies, BHEL emerged as the strongest performer, trading approximately 62 percent above its OFS floor price. The performance reflects renewed investor optimism surrounding India’s capital expenditure cycle, infrastructure development and power equipment demand.

In comparison, Central Bank of India has gained around 6 percent from its OFS issue price, while Coal India Limited and NHPC Limited have delivered gains of approximately 9 percent each. General Insurance Corporation of India (GIC Re) and NLC India Limited have registered gains of around 4 percent and 1 percent, respectively. Meanwhile, Indian Railway Finance Corporation (IRFC) remains slightly below its February OFS floor price, trading around 3 percent lower than the issue level.