Government Preps Aggressive FY27 PSU, PSB Stake Dilution Plan

The government is quietly preparing for a broader, deeper stake dilution in a clutch of PSUs and PSBs in FY27, going well beyond the calibrated minority sales seen so far. With the FY27 Budget already pitching a sharply higher â‚¹80,000 crore disinvestment and asset monetisation target, ministries and regulators are on alert to fast‑track compliance with listing, disclosure and fit‑and‑proper norms ahead of any large Offer for Sale or strategic dilution. Parallel work on enabling the state’s stake to fall below 51% in select listed PSUs, while retaining control through special rights, has further raised expectations of wider stake sales in profitable entities, including banks. Transaction advisers, merchant bankers and board‑level committees are, as a result, tightening internal risk, governance and market‑timing frameworks in anticipation of a more aggressive sell‑down calendar in FY27.