More PSU IPOs, stake sales in pipeline as govt eyes record disinvestment

New Delhi: India is poised to surpass its disinvestment target of Rs 47,000 crore for the current fiscal, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on Monday.

Speaking at a media interaction, Chawla underlined that public investment through budgetary support remains firmly on track, with 33 per cent of the annual allocation achieved by July itself due to front-loaded reforms.

“As markets stabilise, we will bring in more offers for sale, minority stake sales, and a few IPOs and speed up our journey,” he said, indicating that around half a dozen OFS and minority stake sales are lined up, along with one or two strategic disinvestments. The long-pending IDBI Bank stake sale will also be wrapped up within this fiscal, he confirmed.

Chawla emphasised the role of domestic investors in strengthening market confidence. “Democratisation of capital markets has been a big reform,” he said. “Two-thirds of DII flows originated from individual investors, even amidst great nervousness in capital markets.”

He pointed out that between January and August this year, foreign institutional investors (FIIs) pulled out Rs 1 lakh crore, but domestic institutional investors (DIIs) poured in Rs 5 lakh crore, cushioning the markets.

Highlighting the integrated approach to disinvestment, the DIPAM Secretary said the public sector continues to play a bona fide role, particularly in ensuring supply chain security. He also stressed that dividends are a crucial part of the government’s disinvestment policy, with PSUs—accounting for 14 per cent of India’s market capitalisation—contributing 25 per cent of dividends to small shareholders.

According to him, the government is on course to secure over Rs 1.2 lakh crore in dividend receipts this year and meet its asset monetisation goals by FY26.

“In spite of global headwinds, very soon our capital markets will be the third largest in the world,” Chawla asserted.