NEW DELHI: Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) plans to file its draft prospectus by the first week of December and launch its initial public offering (IPO) by February 2027, targeting a fundraising of more than ₹10,000 crore, its chairman and managing director Lokesh Chandra said on Thursday.
“We expect to file for the IPO by December first week and launch the offer by February,” Chandra told Mint.
The proposed listing follows a restructuring of the state-run power distribution utility, including the demerger of its agricultural power distribution business, to prepare its core operations for a public listing.
In July, Bloomberg reported that MSEDCL had appointed SBI Capital Markets Ltd, IIFL Capital Services Ltd, ICICI Securities Ltd, Motilal Oswal Investment Advisors, IDBI Capital Markets & Securities and HDFC Bank as advisers for the proposed share sale.
In April, the Maharashtra government approved a financial restructuring of MSEDCL, including taking over ₹32,679 crore of its debt and demerging its agricultural business, paving the way for the listing.
MSEDCL serves around 34 million consumers and has historically faced financial pressure from high receivables in the agricultural segment and gaps in subsidy payments.
Under scrutiny
The discom reported a net profit of ₹930.62 crore in fiscal year 2026 (FY26), marginally lower than ₹940.84 crore in the previous financial year. Revenue from operations rose about 6.5% year-on-year to around ₹1.29 trillion in FY26.
However, its balance sheet continues to reflect the burden of accumulated losses. According to the company’s FY26 annual report, MSEDCL had accumulated losses of ₹35,551.92 crore and a positive net worth of ₹14,915.06 crore as of 31 March 2026. These figures included the financials of its agricultural business.
The company also noted that it had entered into long-term power purchase agreements with various generators, ranging from 15 to 35 years, while procuring electricity in line with requirements from time to time.
The proposed IPO comes amid a broader push by the Centre to improve the financial viability of state-owned distribution utilities through stock market listings or stake sales.
In October last year, Mint reported that a group of ministers examining the fiscal viability of discoms had proposed three reform pathways: privatizing majority ownership, divesting a minority stake, or listing utilities within three years.
Each option links financial support to performance, including access to 50-year interest-free loans and equity grants for grid modernization, the first person added.
The ministers’ panel pegged the total unsustainable debt of the country’s discoms at ₹2,74,120 crore.
The reform push is also playing out at the state level. The Uttar Pradesh government is moving ahead with plans to privatize power distribution in two major regional utilities—Purvanchal Vidyut Vitran Nigam Ltd and Dakshinanchal Vidyut Vitran Nigam Ltd—through a public-private partnership (PPP) model, with plans to sell a 51% stake in the two discoms.
In March, Union power minister Manohar Lal had said the Centre would extend full support to states in implementing necessary reforms.
MSEDCL’s operational performance, meanwhile, remains an important consideration. The Distribution Utilities Ranking (DUR) report for FY25, released by the power ministry, ranked the company 46th among 66 discoms, with a score of 56.8 out of 100. Its ranking improved from previous year when it had a score of 43.5 and stood at the 60th spot.
