Markets Fund 74 Percent of Centre's Disinvestment While Strategic Sales Stay Under 10 Percent
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Forbes India•15-10-2026, 16:51
Markets Fund 74 Percent of Centre's Disinvestment While Strategic Sales Stay Under 10 Percent
- •The Centre raised Rs4.87 lakh crore through disinvestments between FY16 and FY27, with 73.6 percent coming from stock market routes like ETFs, public offerings, and buybacks.
- •Strategic sales involving the transfer of management control to private buyers contributed only 9.8 percent or Rs47,767 crore during the same period.
- •Canada’s Fairfax Financial Holdings is acquiring a stake in IDBI Bank for about Rs52,878 crore, marking the largest transaction of its kind.
- •The government has consistently missed its disinvestment budget targets in each of the seven years from 2019-20 to 2025-26.
- •The IDBI Bank stake sale is expected to push total disinvestment receipts past the budget estimate for the first time since FY19.
Key Questions Answered
Between FY16 and FY27, 73.6 percent of the Rs4.87 lakh crore raised through disinvestments came through exchange traded funds, public offerings, and buybacks.
Strategic sales, where a private buyer assumes management control, contributed just Rs47,767 crore or 9.8 percent during the same period, excluding the IDBI Bank stake sale.
Canada's Fairfax Financial Holdings is paying about Rs52,878 crore for a majority stake in IDBI Bank, making it the 13th strategic disinvestment and larger than all other strategic sales of the past 12 years combined.
