3 weeks ago
Govt Plans Fresh OFS in Hindustan Zinc, Copper, MDL, IRCTC
The government of India owns shares in many companies.
Sometimes, it sells a small part of these shares to investors, which is called an "Offer for Sale."
The government plans to do this with four more companies this financial year.
Those companies are Hindustan Zinc, Hindustan Copper, Mazagon Dock Shipbuilders, and IRCTC.
For Hindustan Copper, Mazagon Dock, and IRCTC, the government may sell about 5% of each company.
For Hindustan Zinc, it may sell only about 1.5%, but that could still raise plenty of money because the company is worth a lot.
The government has already hired merchant bankers to help prepare these sales.
It recently sold part of LIC, a major insurance company, in the biggest stake sale this year so far.
Earlier in the year, it also sold shares in companies like Coal India, NHPC, and Indian Railway Finance Corporation.
Selling these shares helps the government raise money and continue its disinvestment programme.
The government plans fresh Offer for Sale (OFS) transactions in Hindustan Zinc, Hindustan Copper, Mazagon Dock Shipbuilders (MDL) and IRCTC during FY27.
The proposed stake sales involve around 1.5% in Hindustan Zinc and approximately 5% each in Hindustan Copper, MDL and IRCTC, with final quantum subject to market conditions.
Merchant bankers have already been appointed, with bankers named for five companies including the four PSUs in the past month.
The exact sequence of OFS launches has not been finalised, and bankers are typically informed shortly before a transaction begins.
The government's OFS in LIC was the largest stake sale of the financial year so far, selling a 6.5% stake at a floor price of Rs 382 per share.
- Who
- Government of India, with merchant bankers appointed to manage the transactions
- What
- Plans fresh Offer for Sale (OFS) stake sales in Hindustan Zinc, Hindustan Copper, Mazagon Dock Shipbuilders (MDL) and IRCTC
- Where
- India
- When
- During the current financial year (FY27)
- Why
- To continue the government's disinvestment programme and generate proceeds from its holdings in public sector undertakings
Key facts
- Hindustan Zinc stake planned
- ~1.5%
- Hindustan Copper stake planned
- ~5%
- MDL stake planned
- ~5%
- IRCTC stake planned
- ~5%
- Largest FY27 OFS so far
- LIC: 6.5% stake at Rs 382 floor price
- Earlier FY27 stake sales
- Coal India, NHPC, General Insurance Corporation, Central Bank of India, Indian Railway Finance Corporation
- Status
- Merchant bankers appointed; launch sequence not finalised











