PSU OFS in 2026: The government has accelerated its stake dilution in public sector undertakings (PSUs) through the Offer for Sale (OFS) route in 2026, with Life Insurance Corporation of India (LIC) becoming the latest addition to the list.
LIC OFSUnder the LIC OFS, the government plans to divest a 2.5 per cent equity stake, with an additional 4 per cent greenshoe option that can be exercised in case of strong investor demand. If fully exercised, the total stake sale will rise to 6.5 per cent.
As per the BSE OFS notice, the base offer comprises 31.62 crore equity shares, equivalent to a 2.5 per cent stake, with an issue size of around Rs 12,081 crore. The government also has the option to sell an additional 50.60 crore shares under the 4 per cent greenshoe option.
If the greenshoe option is fully exercised, the total offer size will increase to 82.22 crore shares, representing a 6.5 per cent stake in LIC and taking the total issue size to around Rs 31,410 crore.
PSU OFS in 2026
The LIC OFS follows a series of stake sales by the government in PSUs this year, including Cochin Shipyard, IRFC, General Insurance Corporation, NLC India, NHPC, Coal India, Central Bank of India and BHEL. While institutional participation has largely remained strong, retail response has varied across issues.
Cochin Shipyard OFS
The government offered 1.33 crore equity shares through the OFS at a floor price of Rs 1,400 per share, representing a 4.58 per cent stake dilution and an issue size of Rs 1,856.30 crore. Of the total shares, 0.13 crore were reserved for retail investors and 1.19 crore for non-retail investors.
The OFS witnessed overwhelming institutional demand, with the non-retail portion subscribed 3.53 times on July 7, 2026. However, retail participation remained weak, with only 8.76 per cent of the reserved quota subscribed on July 8.
IRFC OFS
The government sold 24.31 crore equity shares in Indian Railway Finance Corporation (IRFC) through an OFS at a floor price of Rs 91 per share, diluting its stake by 1.86 per cent. The issue size stood at Rs 2,212 crore, with 2.43 crore shares reserved for retail investors and 21.88 crore shares for non-retail investors.
The non-retail portion was subscribed 1.86 times on June 24, while the retail portion saw 41.39 per cent subscription on June 25.
General Insurance Corporation OFS
The General Insurance Corporation (GIC Re) OFS was conducted at a floor price of Rs 352 per share. The government offered 8.77 crore shares, representing a 5 per cent stake dilution and an issue size of Rs 3,094 crore. Of these, 0.88 crore shares were reserved for retail investors and 7.89 crore for non-retail investors.
Institutional demand remained robust, with the non-retail portion subscribed 3.72 times on June 16. Retail participation, however, remained weak at 4.62 per cent on June 17.
NLC India OFS
The NLC India OFS was launched at a floor price of Rs 303 per share, offering 4.16 crore equity shares and diluting the government’s stake by 3 per cent. The issue size was Rs 1,263 crore.
Investor response remained muted, with the non-retail portion subscribed only 5.22 per cent on June 9, while the retail category was subscribed 8.58 per cent on June 10.
NHPC OFS
The government offered 60.27 crore shares in NHPC at a floor price of Rs 71 per share, representing a stake dilution of around 6 per cent and an issue size of Rs 4,300 crore.
The OFS received strong demand across categories. The non-retail portion was subscribed 3.47 times on June 2, while the retail portion was subscribed 1.99 times on June 3.
Coal India OFS
Coal India’s OFS was conducted at a floor price of Rs 412 per share, with the government offering 12.33 crore shares, representing around a 2 per cent stake dilution. The issue size stood at Rs 5,078 crore.
The non-retail portion was subscribed 4.07 times on May 27, while the retail category was subscribed 1.30 times on May 29, indicating strong participation from both investor segments.
Central Bank of India OFS
The Central Bank of India OFS was launched at a floor price of Rs 31 per share. The government offered 72.41 crore shares, representing an 8.08 per cent stake dilution, with an issue size of Rs 2,456 crore.
The OFS received strong demand across investor categories, prompting the government to fully exercise the 4 per cent greenshoe option. The retail portion was subscribed 1.28 times, while the expanded non-retail portion was fully subscribed.
BHEL OFS
The government offered 17.41 crore shares in Bharat Heavy Electricals Ltd. (BHEL) through an OFS at a floor price of Rs 254 per share. The issue represented a 5 per cent stake dilution and an issue size of Rs 4,422.22 crore.
The OFS witnessed healthy institutional participation, with the non-retail portion subscribed 140.89 per cent (1.41 times) on February 11, 2026. Retail demand, however, remained relatively subdued, with the retail quota subscribed at 95.04 per cent on February 12, marginally short of full subscription.
| PSU Stock | Stake Dilution | Issue Size |
| Cochin Shipyard | 4.58% | Rs 1,856 crore |
| IRFC | 1.86% | Rs 2,212 crore |
| General Insurance Corporation | 5% | Rs 3,094 crore |
| NLC India | 3% | Rs 1,263 crore |
| NHPC | 6.01 | Rs 4,300 crore |
| Coal India | 2% | Rs 5,078 crore |
| Central Bank of India | 8.08% | Rs 2,456 crore |
| BHEL | 5% | Rs 4,422 crore |
Overall, the government’s 2026 PSU disinvestment drive through the OFS route has delivered mixed results. While institutional investors have consistently shown strong appetite for most issues, retail participation has remained uneven. With LIC’s mega OFS now underway, investor response will be closely watched as a key test of demand for large-scale PSU stake sales.
