The Centre has put four to five planned stake sales in public sector companies on hold for the second half of FY27 as falling share prices complicate its disinvestment plans, NDTV Profit reported on Monday, citing official sources.
Potential offers for sale (OFS) in Indian Overseas Bank and Hindustan Zinc are among the transactions affected by the pause, according to the report. The proposed strategic sale of IDBI Bank has also been delayed, with no clarity on when the process will move forward.
Market correction blamed
The government is reassessing the timing of further stake sales and will wait for market conditions to improve before proceeding, officials told NDTV Profit. The correction has raised concerns about the valuations the Centre could secure from fresh share sales.
The report said the NSE Nifty 50 has fallen 12 per cent since the war involving Iran and the United States began, while the Nifty PSE index, which tracks 20 public sector stocks, has declined 14 per cent over the same period. Shares of Indian Overseas Bank and Hindustan Zinc have dropped as much as 17 per cent. Rising oil prices amid escalating tensions in the Middle East, along with higher US Treasury yields, inflation concerns and rising interest rates, have added to the pressure on equities.
Disinvestment tally so far
According to the report, the government has mobilised nearly Rs 62,124 crore through disinvestment and asset monetisation so far — disinvestment receipts account for Rs 55,757 crore, while asset monetisation has contributed Rs 6,367 crore. The Centre has set a target of Rs 80,000 crore for asset monetisation in FY27, and officials said the timing of further stake sales will depend on market conditions.
The report is based on statements from official sources to NDTV Profit and has not been officially confirmed in a government release.
Sources:
- NDTV Profit: Exclusive: Stock Market Rout Forces Centre To Put PSU OFS Plans On Hold; Hindustan Zinc, Indian Overseas Bank Among Affected
Potential offers for sale (OFS) in Indian Overseas Bank and Hindustan Zinc are among the transactions affected by the pause, according to the report. The proposed strategic sale of IDBI Bank has also been delayed, with no clarity on when the process will move forward.
Market correction blamed
The government is reassessing the timing of further stake sales and will wait for market conditions to improve before proceeding, officials told NDTV Profit. The correction has raised concerns about the valuations the Centre could secure from fresh share sales.
The report said the NSE Nifty 50 has fallen 12 per cent since the war involving Iran and the United States began, while the Nifty PSE index, which tracks 20 public sector stocks, has declined 14 per cent over the same period. Shares of Indian Overseas Bank and Hindustan Zinc have dropped as much as 17 per cent. Rising oil prices amid escalating tensions in the Middle East, along with higher US Treasury yields, inflation concerns and rising interest rates, have added to the pressure on equities.
Disinvestment tally so far
According to the report, the government has mobilised nearly Rs 62,124 crore through disinvestment and asset monetisation so far — disinvestment receipts account for Rs 55,757 crore, while asset monetisation has contributed Rs 6,367 crore. The Centre has set a target of Rs 80,000 crore for asset monetisation in FY27, and officials said the timing of further stake sales will depend on market conditions.
The report is based on statements from official sources to NDTV Profit and has not been officially confirmed in a government release.
Sources:
- NDTV Profit: Exclusive: Stock Market Rout Forces Centre To Put PSU OFS Plans On Hold; Hindustan Zinc, Indian Overseas Bank Among Affected
