LIC, UCO Bank, ONGC In Focus As India Looks To Fast Track Its Divestment Program

India is reportedly looking to accelerate its divestment program with minority stake sales in nearly half a dozen state-run companies.

Although divestment secretary Arunish Chawla didn't mention the names of the companies during an interview with CNBC-TV18, earlier reports suggest that public sector banks, such as UCO Bank and Bank of Maharashtra, could be among those considered.

In addition, the government faces pressure to cut its holding in the Life Insurance Corporation of India (LIC) to comply with the Securities and Exchange Board of India's minimum public shareholding norms.

Chawla also confirmed plans to launch an initial public offering (IPO) of a state-run natural resources company or one of its subsidiaries within the current financial year. Potential candidates include the green energy units of Oil and Natural Gas Corporation (ONGC) and NHPC, both of which have been exploring separate listings.

Capital Inflows

The initiatives are part of a broader strategy to raise ₹470 billion through stake sales and asset monetization before March 2026. At the same time, dividend inflows from public sector firms are expected to surpass estimates, with receipts projected at ₹690 billion.

The Nifty PSU Bank index closed 0.36% lower, with UCO Bank down 0.9% and Bank of Maharashtra falling 0.14% at Monday's close.

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