The Indian government has successfully collected over three-fourths of its budget estimates under Miscellaneous Capital Receipts (MCR) within the first five months of the fiscal year. Supported by completed stake sales in Life Insurance Corporation (LIC) and other central public sector enterprises (CPSEs), expectations are high that overall collections will reach a new high in FY27, contingent upon the completion of the strategic sale of IDBI Bank.
The term MCR has replaced disinvestment proceeds and has been widened to include proceeds from minority stake sales, strategic disinvestments, share buybacks of CPSEs, and asset monetization. For the fiscal year 2026-27, the government estimated total collections of ₹80,000 crore under MCR.
To date, the government has generated over ₹62,000 crore. This figure includes over ₹55,700 crore raised through government holdings in various CPSEs and private companies via SUUTI, alongside over ₹6,300 crore through asset monetization. The single largest contribution came from LIC, where the government secured over ₹35,000 crore by selling a part of its stake through an Offer for Sale (OFS) on the stock exchange.
An OFS is a mechanism enabling promoters or major shareholders of a listed company to sell shares to the public through the stock exchange platform. It requires less documentation and operates much faster than initial public offerings (IPOs) or follow-on public offerings (FPOs).
In addition to LIC, official data shows the government has completed OFS transactions in several public sector entities. These include the Central Bank of India (over ₹2,200 crore), Coal India (over ₹5,500 crore), NHPC (over ₹4,300 crore), NLC (over ₹1,200 crore), GIC (over ₹3,000 crore), IRFC (over ₹2,000 crore), Cochin Shipyard (over ₹1,700 crore), and Hindustan Copper (over ₹3,000 crore).
While the government has not disclosed the exact number of OFS transactions planned for FY27, indicators point to a strong pipeline involving public sector banks and financial institutions. There is also a possibility of listing CPSEs such as the Export Credit Guarantee Corporation (ECGC) and India Infrastructure Finance Company Ltd (IIFCL) on the bourses. Government officials remain tight-lipped regarding specific timelines and the names of the next CPSEs to be listed, noting that advance announcements can impact market prices and that timing will depend on market conditions.
Furthermore, indications suggest that the strategic sale of a majority shareholding and management control in IDBI Bank could be completed soon. Reports indicate that Canada-based Fairfax Financial Holdings' bid to acquire a 60.72 percent stake from the government and LIC is likely to receive approval. Based on current price levels, this transaction could yield over ₹56,000 crore, pushing total MCR collections well above budget estimates.
Currently, there are 68 CPSEs listed on stock exchanges, with a government shareholding valued at over ₹22.80 lakh crore. Additionally, 16 public financial institutions, including banks and insurance companies, are listed with government shareholdings valued at approximately ₹19 lakh crore. This valuation provides significant headroom for minority stake sales. Furthermore, many CPSEs and public financial institutions need to reduce government holding to meet the minimum public shareholding norm of 25 percent, necessitating further OFS transactions during the current fiscal year.
"The steady progress in meeting Miscellaneous Capital Receipts targets highlights the efficiency of the Offer for Sale mechanism for public sector enterprises. Achieving over three-fourths of the annual target in just five months demonstrates strong market absorption capacity. If strategic transactions like the IDBI Bank sale conclude successfully as anticipated, it will significantly boost government capital receipts and provide strong momentum for ongoing public sector stake rationalization." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
