MCL and SECL listings pay Coal India first, and the government only through dividends from FY28.
NEW DELHI: Days after the Cabinet cleared the ₹52,878 crore sale of IDBI Bank, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said public sector stock market offerings will continue through FY27. The government plans to list India Infrastructure Finance Company Limited (IIFCL) and two Coal India subsidiaries, Mahanadi Coalfields (MCL) and South Eastern Coalfields (SECL). Notably, the plan proceeds even though receipts are on course to cross the Budget target.
₹88,624 crore: The target is within reach
The Union Budget set ₹80,000 crore for disinvestment and asset monetisation in FY27. Receipts stood at ₹62,124 crore before the IDBI decision, helped by a 6.5% offer for sale in LIC that raised ₹31,515 crore. Smaller tranches in Coal India, NHPC and Hindustan Copper added to it. The government’s share of the IDBI sale, about ₹26,500 crore, would lift the total to roughly ₹88,624 crore, or 10.78% above target. That would be the first time in eight fiscal years that the budgeted figure is exceeded.
However, that cash has not arrived yet. Completion is targeted for the end of FY27 and still needs Reserve Bank of India clearance, a signed share purchase agreement and an open offer. Even so, Chawla says the Finance Ministry will not pause, which treats the target as a floor and not a ceiling.
IIFCL: A balance sheet to price
IIFCL was set up in 2006 as a wholly government-owned lender for long-term infrastructure debt, and it became a registered infrastructure finance company in 2013. In FY26, its loan book rose 17% to ₹81,715 crore. Sanctions reached a record ₹57,680 crore, and disbursements grew 16% to ₹32,972 crore. Net worth stands at ₹17,898 crore.
Profit after tax fell 36% to ₹1,379 crore because of mark-to-market losses on unhedged foreign currency debt. Investors will likely probe that detail. The offer will mainly be a government sale, so proceeds would go straight into the exchequer. Listed peers such as IRFC, PFC, REC and IREDA already give the market a yardstick. DIPAM and IIFCL have invited bids for a registrar, share transfer agent and advertising agency until 3 November, which points to prospectus work in the second half of FY27. The size of the stake has not been announced.
25% and 10%: The coal route
Two Coal India arms have already listed, Bharat Coking Coal in January 2026 and the Central Mine Planning and Design Institute in March. MCL and SECL are next. Coal India’s board has approved selling up to 25% of MCL and up to 10% of SECL, following a Coal Ministry memorandum in December 2025.
Both are profitable. MCL produced 218.31 million tonnes in FY26 and earned ₹10,698 crore, while SECL produced 176.29 million tonnes and earned ₹4,755 crore. MCL has filed its draft prospectus, and SECL awaits its own. Importantly, the proceeds go to Coal India and not to the government. The exchequer benefits only indirectly, through dividends from FY28 onwards. Some global funds with ESG limits avoid thermal coal, so domestic investors focused on dividends will probably matter most.
2 tracks: Sales that take years, listings that take months
Strategic sales transfer control and typically take 18 to 36 months, as with IDBI. The queue also includes BEML, Shipping Corporation of India, NMDC Steel, CONCOR and HLL Lifecare. Listings dilute minority stakes while the state keeps control, and they usually take three to six months from the appointment of intermediaries. Consequently, running both tracks gives DIPAM a steady supply of equity even if a complex sale slips.
3.5 times: Can the market absorb it?
Recent evidence is encouraging. NHPC’s 6.01% offer fetched ₹4,357 crore and was subscribed almost 3.5 times on its first day. Cochin Shipyard’s offer drew 3.52 times the shares on offer, and DIPAM exercised its full greenshoe option. Domestic institutions, systematic investment plans and retail buyers keep supplying liquidity. Meanwhile, receipts help the government pursue its FY27 fiscal deficit target of 4.3% of GDP, about ₹16.96 lakh crore.
Signals to watch
Several markers will show whether the plan holds. DIPAM must appoint bankers for IIFCL after 3 November, and the Securities and Exchange Board of India (SEBI) must respond to MCL’s prospectus. Prospectus filings for SECL and IIFCL will follow, along with Cabinet approvals for the final structures. Stake sizes will reveal how much the government wants to raise. On IDBI, watch RBI clearance and the share purchase agreement. The Revised Estimates for FY27 and Coal India’s dividends from FY28 will show how the receipts translate into fiscal room.
Encouragingly, the government is using good market conditions to put real valuations on state assets. Ultimately, the first prospectus filings will show how fast this pipeline moves.
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