India divestment plans will continue through the rest of the 2026–27 financial year, with further public-sector bank stake sales, a second public infrastructure investment trust and preparations for three company IPOs. Department of Investment and Public Asset Management secretary Arunish Chawla outlined the pipeline on October 23, 2026, while the pending IDBI Bank transaction remained central to expectations of exceeding the annual receipts target.
Key Takeaways
- The government has raised Rs 62,124 crore against a fiscal-year target of Rs 80,000 crore.
- Bank stake reductions will focus on lenders where government ownership exceeds 75%.
- A second public highway InvIT is being prepared, while the IDBI sale still requires approvals and transaction steps.
Table of Contents
- India divestment receipts still depend on pending transactions
- Bank stake sales will move holdings toward 75%
- Second highway trust and three IPOs are in preparation
- IDBI completion requires approvals and an open offer
- Conclusion
India divestment receipts still depend on pending transactions
The government has collected Rs 62,124 crore through offers for sale, infrastructure investment trusts and stake sales so far this financial year. That leaves receipts Rs 17,876 crore below the Rs 80,000 crore annual target.
Chawla expects receipts to exceed the target following completion of Fairfax Financial Holdings’ Rs 52,878-crore deal to buy IDBI Bank. The transaction remains pending, so its announced value should not be treated as money already received.
Further asset sales will proceed rather than stop once the fiscal target is met, Chawla said. The programme therefore includes both near-term revenue collection and a continuing reduction in government ownership.
| Item | Details |
|---|---|
| Punjab & Sind Bank | Government ownership exceeds 90%. |
| Indian Overseas Bank | Government ownership exceeds 90%. |
| UCO Bank | Government ownership exceeds 90%. |
| Stake-reduction threshold | Chawla identified banks with government ownership above 75% as candidates for sales. |
Bank stake sales will move holdings toward 75%
Chawla said public-sector banks with government stakes above 75% are candidates for ownership reductions. The aim is to bring those holdings closer to 75%, consistent with minimum public shareholding requirements.
DIPAM’s explanation of offer-for-sale mechanics describes an OFS as a sale of listed-company shares through an exchange platform. It distinguishes minority stake sales, which do not transfer management control, from strategic disinvestment.
The timing and choice of assets will depend on market conditions and internal research, Chawla said. DIPAM has about 70 listed companies in its potential sale basket, rather than a fixed timetable for selling every holding.
Second highway trust and three IPOs are in preparation
The government has identified a cluster of 10 national highways as the underlying assets for a second public infrastructure investment trust, or InvIT. Chawla said he hoped it would be launched before the financial year closes in March 2027; that remains an intended timetable, not a completed transaction.
The proposed trust would follow the Raajmarg Infra Investment Trust, which listed in March 2026 and raised Rs 9,500 crore through highway asset monetisation.
The government also plans to prepare three companies for initial public offerings. Chawla did not identify the companies or provide individual listing dates.
IDBI completion requires approvals and an open offer
Chawla expects the IDBI transaction to close by the end of the financial year. Before completion, Fairfax must obtain Reserve Bank of India approvals, conclude share purchase agreements and finalise an open offer under takeover guidelines.
He said IDBI would remain a board-managed company after the ownership change. He also said existing employees’ service conditions could not be amended to their disadvantage by Fairfax and that pensioners had a dedicated fund.
Conclusion
The next steps to watch are the RBI approvals and transaction arrangements needed for IDBI’s sale, alongside preparations for the second highway InvIT. Both remain pending elements of the government’s fiscal-year divestment programme.
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