Stocks where the Government Can do OFS

#2 IRFC

Second on the list is IRFC.

IRFC is the dedicated financing arm of the Indian Railways. The Navratna PSU primarily raises funds from domestic and international markets to finance the capital expenditure undertaken by the Ministry of Railways. It manages assets worth Rs 4.8 tn.

The government has launched an OFS of up to a 2% stake in IRFC, with a floor price of Rs 91 per share.

The stake sale is expected to fetch around Rs 22 bn if the entire 2% issue, including the greenshoe option, is subscribed. The bidding is still underway as of 25 June 2026.

The OFS is primarily aimed at increasing public shareholding, as the government currently owns 84.65% of IRFC, above SEBI's mandated 75% promoter holding limit.

Even after the 2% dilution, the government's stake will remain at around 82.65%, meaning additional stake sales are likely over the coming years to meet the minimum public shareholding requirement.

Check out the LIC's financial factsheet and quarterly results to know more.

#3 Indian Overseas Bank

Third on the list is Indian Overseas Bank (IOB).

The bank has a dominant presence in South India, particularly in Tamil Nadu. IOB operates 3,494 domestic and 4 overseas branches. About 58% of IOB's domestic branches (around 2,040) are located in rural (27%) and semi-urban regions (31%). The bank's total assets stand at Rs 6.8 tn.

While the government has not announced an OFS for IOB, the lender remains one of the strongest candidates for a future stake sale. The government currently holds around 92.4% in the bank, significantly above SEBI's mandated 75% promoter holding limit.

The government has reduced its holding from 96.4% in December 2024 to 92.4% in March 2026. However, this is not sufficient to bring the government's holding below the regulatory threshold.

To comply with the minimum public shareholding norms, the government will eventually have to dilute another 17.4% stake, either through one or multiple rounds of OFS, qualified institutional placements, or other market routes.

Given the large gap that exists, IOB is widely viewed as one of the most likely PSU candidates for further stake dilution.

Check out the Indian Overseas Bank's financial factsheet and quarterly results to know more.

#4 Central Bank of India

Next on the list is the Central Bank of India.

The Central Bank of India is one of the country's oldest public-sector banks. The bank operates a network of 4,585 branches, with 65% located in Rural and Semi-Urban areas. The bank's total business expanded to Rs 8.12 tn as of March 2026.

The government's stake in the bank stood at 89.3% in March 2026 and dropped to 81.2% in May 2026. This is higher than SEBI's prescribed 75% promoter holding limit. Thus, it remains one of the strongest candidates for a future stake sale.

To comply with the minimum public shareholding norms, the government will eventually have to reduce its stake by more than 6.2 percentage points. This is likely to happen through one or multiple OFSs over the coming years.

Check out the Central Bank's financial factsheet and quarterly results to know more.

#5 UCO Bank

Next on the list is UCO Bank.

UCO Bank is a government-owned bank serving retail customers, businesses, and agricultural borrowers.

The bank's physical footprint (3,412 domestic branches) is concentrated in the East (30%) and North India (26%). The bank's global business assets stood at Rs 5.9 tn as of March 2026. No OFS has been announced for UCO Bank so far.

However, the bank stands out as one of the strongest contenders for a future government stake sale, considering the Centre still owns around 90.9% of the lender. In fact, the government last sold a 4.4 percentage points stake during the March 2025 quarter.

However, with public shareholding still well below SEBI's prescribed 25% threshold, the government will eventually have to offload a sizeable stake to meet regulatory norms. Thus, UCO Bank could see multiple OFS rounds over the next few years as the government gradually reduces its holding.

Check out UCO Bank's financial factsheet and quarterly results to know more.

#6 Punjab & Sind Bank

Next on the list is Punjab & Sind Bank.

Punjab & Sind Bank is a public-sector bank focused on retail, agriculture, MSME, and corporate banking. It has a pan-India network of 1,654 branches with a significant presence in Punjab. Its total assets stand at Rs 2.6 tn.

The government last sold 4.4% stake during the March 2025 quarter. Punjab & Sind Bank has not announced an OFS, but it's another strong contender for a future stake sale. The government still owns 93.8% of the bank, leaving public shareholding far below SEBI's mandated 25% threshold.

With one of the highest government holdings among listed public-sector companies, the bank will require substantial dilution to meet regulatory requirements.

This makes Punjab & Sind Bank one of the most likely candidates for multiple OFSs over the next few years, unless the government chooses another route to increase public shareholding.

Check out Punjab & Sind Bank's financial factsheet and quarterly results to know more.

#7 Mazagon Dock Shipbuilders

Next on the list is Mazagon Dock Shipbuilders.

Mazagon Dock Shipbuilders is one of India's leading defence shipyards. The company designs and builds warships, submarines, and other naval vessels for the Indian Navy and Coast Guard, while also undertaking ship repair and refit projects.

The government last sold a 3.6% stake during the June 2025 quarter. Although the government has not announced a fresh OFS, Mazagon Dock Shipbuilders remains a strong candidate for another stake sale.

The center currently owns around 81.2% of the defence PSU, above SEBI's prescribed 75% promoter holding limit. Thus, further divestment will be required to increase public shareholding to at least 25%.

Given the company's strong market performance, healthy order book, and high investor interest in defence stocks, Mazagon Dock is considered a likely candidate for another OFS over the medium term.

Check out Mazagon Dock's financial factsheet and quarterly results to know more.

#8 General Insurance Corporation of India

Next on the list is General Insurance Corporation of India (GIC).

GIC is India's largest reinsurance company, providing risk cover to insurance companies. It underwrites a wide range of general insurance risks across segments such as property, engineering, marine, aviation, health, and agriculture.

The government recently concluded an OFS in GIC, offering up to a 5% stake at a floor price of Rs 352 per share. The transaction was expected to raise around Rs 30 bn.

Despite this dilution, the government's holding is expected to remain at around 77.4%, which is above SEBI's 75% promoter holding limit. As the government's holding is still above 75%, additional stake sales may be required over time to meet the minimum public shareholding requirement.

Check out GIC's financial factsheet and quarterly results to know more.

#9 New India Assurance Company

Next on the list is New India Assurance Company (NIACL).

NIACL is India's largest non-life insurance company by market presence. It offers non-life insurance products across motor, health, property, marine, crop, travel, and commercial insurance segments, serving both domestic and international markets.

The government is yet to undertake an OFS in NIACL after its listing. However, the insurer remains a strong contender for a future OFS as the government holds around 85.4% of the company, well above SEBI's 75% promoter holding limit.

The government has previously indicated its intent to gradually reduce its holding in listed public-sector insurers to meet the minimum public shareholding requirement.

As NIACL still needs a dilution of more than 10 percentage points, additional OFSs are a likely route to increase public ownership while supporting the center's broader disinvestment program.

Check out NIACL's financial factsheet and quarterly results to know more.

#10 Bharat Heavy Electricals

Next on the list is Bharat Heavy Electricals (BHEL).

The government recently concluded an OFS in BHEL, reducing its stake by 5% to around 58.2%.

While the current promoter holding is already below SEBI's 75% limit, BHEL could be on the government's radar for future stake monetisation if market conditions remain favourable.

Check out BHEL's financial factsheet and quarterly results to know more.

#11 Hindustan Aeronautics

Next on the list is Hindustan Aeronautics (HAL).

The government has not announced any further OFS since selling a 3.5% stake in March 2023. However, the government holds 71.6% stake in HAL.

Thus, the defence PSU remains a potential candidate for future stake monetisation as it is one of the government's most valuable listed assets.

Check out HAL's financial factsheet and quarterly results to know more.

#12 IRCON International

Last on the list is IRCON International.

The government has not announced an OFS in IRCON since reducing its stake through an OFS in the December 2023 quarter. It currently owns around 65.2% of the railway infrastructure company.

Although IRCON already complies with SEBI's minimum public shareholding norms, it remains one of the railway PSUs that could be considered for future stake monetisation.

If the center looks to monetise high-quality listed assets to meet its divestment targets, IRCON could be among the companies considered for another stake sale.

Check out IRCON's financial factsheet and quarterly results to know more.

Conclusion

With the government targeting higher capital receipts in FY27, stake sales in listed PSUs are expected to remain an important part of its disinvestment strategy.

Companies that still have high government ownership or enjoy strong market valuations are likely to stay on the radar for future OFSs.

While no official announcements have been made for most of these companies, they stand out as the most probable candidates based on current shareholdings and the government's monetisation strategy.

Instead of relying solely on hype, investors need to carefully analyse the company's fundamentals, including financial performance, corporate governance practices, and growth strategies.

Happy investing.

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