India Wants To Sell Stake in Public Entities to Raise $20 Billion

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THE GIST

The Modi-led Indian government wants to sell stakes in public assets to raise about $19.7 billion over the next four years.

Why?

Because it wants to raise money without debt. The IPOs will be for companies in core service sectors including railways, power, petroleum & natural gas, aviation, and coal. All industries central to India’s infrastructure and development agenda.

WHAT HAPPENED

New Delhi wants to pawn off public assets to private investors to raise cash in the order of $20 billion dollars by the end of the 2029/30 financial year. These IPOs are part of a much larger asset-monetization strategy focused on unlocking value from government-owned assets, with a target of about $183.7 billion monetized over the next four years.

This initiative is a part of the government’s broader asset monetization strategy, building on a previous phase (FY 2022–25) that raised about $58.3 trillion, just short of its initial $66 billion goal.

New Delhi is targeting the country’s core industries, which are also the biggest public sector employers, including railways, power, petroleum & natural gas, aviation, and coal. Seven railway companies could collectively raise around $9.2 billion, with a significant portion expected as early as FY 2026/27. Subsidiaries of state power firms are projected to contribute roughly $3.4 billion. Subsidiaries of Coal India and the renewable assets of NLC India could raise about $5.3 billion. The Airports Authority of India plans to list stakes in one of its subsidiaries, plus four joint-venture airports.

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Why is the Indian government doing this?

Because it wants to raise money without borrowing it. The only way to do that in a tight financial environment is to go public on the stock market.

By transforming idle or under-utilized public assets into active streams of capital for development and fiscal needs, New Delhi hopes to generate funds without raising taxes or significantly increasing public debt, while getting applauded for spurring private investment in infrastructure.

The timing makes some sense: India’s primary markets have seen strong activity from private sector IPOs and overall vibrant listings, suggesting investor appetite is rising and creating a helpful backdrop for government offerings. Listing subsidiaries of state-owned enterprises reflects a broader policy drive toward reforming legacy public sector institutions nudging them toward governance standards and efficiency benchmarks demanded by public markets.

WHAT’S NEXT

The best-case scenario is that the plan succeeds and this program meaningfully supports government finances and infrastructure spending without resorting to debt markets. And public listing requirements enforce higher standards of disclosure, accountability, and operational efficiency.

If things go south, public investors will demand discounts on government entities due to concerns around governance, strategic restrictions, or legacy liabilities. And not to mention, the paperwork will be a nightmare. To get regulatory clearances and get government offices to be open to audits and transparent accounting is the first step.

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