NLC India OFS opens as government completes 6 stake sales in 2026; why PSU stocks have gained up to 83% after OFS

The government’s disinvestment drive has picked up pace in 2026, with six Offer for Sale (OFS) transactions completed so far this year. The latest in the series—NLC India—opened today, marking its second OFS in two years and extending a steady run of stake dilution across state-run companies.

Since January 2024, the Centre has carried out stake sales in at least 12 companies through the OFS route, including NHPC, Coal India, Central Bank of India, IRFC and BHEL. NHPC alone has seen two rounds of stake sale in this period, underlining the repeated use of the mechanism to pare holdings in phases.

What stands out in this disinvestment cycle is the post-OFS stock performance. In several cases, PSU stocks have moved sharply higher after the government’s sale, often outperforming expectations and widening the gap between OFS pricing and later market levels.

IRFC, priced at Rs 104 in its OFS, later moved to Rs 108, a 4.2 per cent rise within under two months. BHEL, offered at Rs 254, surged to Rs 425, delivering a 67.3 per cent gain in just over three months.

IOB gained 11.8 per cent post OFS, while Bank of Maharashtra rose 59.1 per cent. Mazagon Dock climbed 49.5 per cent, and Cochin Shipyard gained 65.2 per cent over the following months.

NLC India emerged as one of the strongest movers, rising 83 per cent after its OFS, while NHPC jumped nearly 79 per cent within months of the stake sale.

Heavy government holding still across PSUs

Despite the steady dilution, government ownership remains high in several public sector firms, leaving scope for further OFS activity ahead.

LIC continues to have promoter holding of 96.5 per cent. FACT stands at 90 per cent, while ITDC is at 87 per cent. IRFC has government holding of 84.65 per cent, followed by New India Assurance at 85.4 per cent and GIC at 82.4 per cent.

SJVN and Mazagon Dock also remain heavily held at 81.8 per cent and 81.2 per cent respectively.

Disinvestment push continues

Market participants say the OFS pipeline shows a steady, structured approach to disinvestment—helping the government raise funds while gradually increasing public shareholding in PSUs.

The ongoing NLC India OFS will be closely tracked for demand and pricing, especially after a series of strong post-sale stock performances across the PSU space.

With multiple stake sales already completed in 2026, PSU stocks continue to remain in focus, both for government fundraising and for investors tracking momentum after each OFS event.