Government to List Three State-Owned Firms and Launch Second InvIT
The Indian government is set to list three public sector companies and initiate its second public InvIT this fiscal year to enhance infrastructure funding.
Three state-owned firms, including IIFCL and Mahanadi Coalfields, are preparing for market listings.
The second public InvIT aims to monetize highway assets, building on a successful first offering.
The government is focusing on new listings to diversify investment opportunities in the public sector.
In a strategic move to bolster infrastructure financing, the Indian government plans to list three additional state-owned enterprises and introduce its second public infrastructure investment trust (InvIT) within the current fiscal year. Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), confirmed that the listings aim to unlock value in public-sector assets and attract long-term investments.
The companies set for listing include India Infrastructure Finance Company Ltd (IIFCL), Mahanadi Coalfields Ltd (MCL), and South Eastern Coalfields Ltd (SECL). The draft red herring prospectus for Mahanadi Coalfields has already been submitted, while preparations for the other two listings are progressing. Chawla stated that all three firms are market-ready, indicating a significant step towards enhancing public sector participation in capital markets.
IIFCL, established in 2006, specializes in providing long-term funding for infrastructure projects, including public-private partnerships. As of March 2026, the company reported total assets of ₹98,481 crore and a net worth of ₹17,898 crore. Despite a decline in net profit due to various factors, including foreign currency losses, the company has shown improved asset quality with a reduction in gross non-performing assets (NPAs). The proposed offering is anticipated to involve both a government stake sale and a fresh issue of shares.
The second public InvIT is expected to capitalize on the government's previous success, which raised approximately ₹9,200 crore in March 2026. This new trust will focus on national highway stretches as its underlying assets, allowing the government to monetize future cash flows without outright selling the infrastructure. Chawla emphasized the importance of this model in creating a sustainable financing mechanism for infrastructure development.
Looking ahead, Chawla indicated that while there are more companies in the pipeline for potential listings, the immediate focus remains on completing the current transactions. The government aims to build on the momentum generated by previous successful share sales, such as LIC and IDBI Bank, while ensuring that employee concerns are addressed in ongoing restructuring efforts. This initiative reflects a broader strategy to enhance public asset management and diversify investment opportunities in the Indian market.
