Govt raises ₹25,491 crore via PSU OFS in 2026, highest in over a decade
Synopsis
India's government has quietly notched its biggest PSU disinvestment haul in over a decade — ₹25,491 crore raised through OFS in just the first half of 2026, already rivalling the full-year 2024 tally. With BHEL surging 62% above its floor price and the all-time high within reach, the Centre's front-loaded sell-down strategy is reshaping the disinvestment playbook.
Key Takeaways
The Centre has raised ₹25,491 crore through OFS stake sales in eight listed PSUs in 2026 — the highest since 2015 , per Prime Database .
Including private issuances, 24 companies have collectively raised ₹29,445 crore via OFS so far this year.
The 2026 tally is close to the full-year 2024 figure of ₹30,178 crore and within range of the all-time high of ₹35,566 crore set in 2015 .
BHEL leads post-OFS gains at approximately 62% above its floor price; IRFC remains around 3% below its February floor price.
Analysts say the proceeds could help fund higher food, fertiliser, and cooking gas subsidy expenditure.
The Centre has mobilised ₹25,491 crore through stake sales in eight listed public sector undertakings (PSUs) via the Offer for Sale (OFS) route so far in 2026, marking the highest such fundraising through PSU OFS issues since 2015, according to data compiled by Prime Database. The figure surpasses the previous decade's annual benchmarks and signals an accelerated disinvestment push by the government in the current calendar year.
Scale of the Fundraising
Including private sector issuances, a total of 24 listed companies have collectively raised around ₹29,445 crore through the OFS route in 2026 so far. This already approaches the ₹30,178 crore raised by 28 companies across the whole of 2024, and is not far from the all-time high of ₹35,566 crore mobilised by 19 firms in 2015. For context, that 2015 peak was achieved when the Centre garnered around ₹35,291 crore through stake sales in five listed PSUs alone.
Which PSUs Participated
Among state-run enterprises, OFS transactions have been executed in Bharat Heavy Electricals Ltd (BHEL), Indian Railway Finance Corporation (IRFC), Central Bank of India, Coal India, NHPC, NLC India, and General Insurance Corporation of India (GIC Re), among others. Private sector companies have also tapped the OFS window in parallel.
Post-OFS Stock Performance
BHEL has emerged as the standout performer among the recently divested PSU stocks, trading approximately 62% above its OFS floor price. Coal India and NHPC have risen roughly 9% from their respective floor prices, while Central Bank of India has gained around 6% since its May issue. NLC India and GIC Re have posted modest gains of approximately 1% and 4%, respectively. IRFC, however, remains around 3% below its February OFS floor price. Analysts note that PSU stocks have broadly delivered a muted performance following their OFS launches, despite bouts of volatility driven by foreign institutional investor outflows, geopolitical uncertainties, and fluctuations in crude oil prices.
Why the Government Is Selling
Analysts point out that funds raised through early-year stake sales could help the Centre meet higher expenditure requirements linked to food, fertiliser, and cooking gas subsidies. This comes amid a broader fiscal consolidation effort, where non-tax revenue from disinvestment provides headroom without adding to the borrowing programme. Notably, the pace of OFS activity in 2026 suggests the government is front-loading its disinvestment calendar rather than bunching transactions toward the financial year-end — a pattern that has historically compressed valuations.
What to Watch Next
With the total OFS tally already nearing the full-year 2024 figure by June, market participants will watch whether the Centre pushes further stake sales in the second half of the year to test the all-time high. The performance trajectory of already-divested PSU stocks — particularly laggards like IRFC — will also influence retail and institutional appetite for future OFS tranches.
Point of View
But the composition tells a more cautious story. Only BHEL has delivered meaningful post-OFS returns; most other divested PSUs are trading flat or marginally above floor price, suggesting institutional demand was calibrated rather than enthusiastic. Front-loading disinvestment into the first half of the year is a smart fiscal move — it avoids year-end crowding and gives the government flexibility — but it also means the second-half pipeline must now clear a higher bar on valuations. The real test is whether the Centre can sustain OFS momentum without leaning on floor prices that undercut market discovery.
NationPress
25 Jun 2026
Frequently Asked Questions
How much has the government raised through PSU OFS in 2026?
The Centre has raised approximately ₹25,491 crore through OFS stake sales in eight listed PSUs so far in 2026, according to data compiled by Prime Database. This is the highest amount raised through PSU OFS issues since 2015.
Which PSUs have conducted OFS sales in 2026?
OFS transactions have been carried out in BHEL, IRFC, Central Bank of India, Coal India, NHPC, NLC India, and General Insurance Corporation of India, among others, during 2026.
How does the 2026 PSU OFS figure compare to previous years?
The ₹25,491 crore raised through PSU OFS in 2026 is the highest since 2015, when around ₹35,291 crore was raised. The combined OFS tally of ₹29,445 crore — including private sector issuances — is already close to the full-year 2024 figure of ₹30,178 crore.
Which divested PSU stock has performed best after its OFS?
BHEL has been the strongest performer, trading approximately 62% above its OFS floor price. Coal India and NHPC have risen roughly 9%, while IRFC remains about 3% below its February OFS floor price.
Why is the government accelerating PSU stake sales in 2026?
Analysts say the proceeds from early-year OFS transactions could help the Centre meet higher expenditure requirements on food, fertiliser, and cooking gas subsidies, providing fiscal headroom without increasing market borrowings.
