HURL IPO in FY27: 11% stake sale to raise ₹6,000 cr

HURL IPO plan takes shape for FY2026-27

Hindustan Urvarak & Rasayan Limited (HURL), a joint venture backed by NTPC, Indian Oil Corporation (IOCL) and Coal India (CIL), is likely to tap the market with an initial public offering in the ongoing fiscal year 2026-27. An official source aware of the development said the plan involves disinvesting 10-11% equity in total. The proposed divestment is expected to raise about ₹5,000-₹6,000 crore. The offering is being positioned as part of the Centre’s broader push on public sector monetisation. If executed, the transaction will put a relatively young fertiliser asset on the public market, with state-run promoters continuing to remain key shareholders.

Who owns HURL and how the shareholding is split

HURL was incorporated on June 15, 2016. It is a joint venture company of Coal India Limited, NTPC Limited and Indian Oil Corporation Limited. Each of the three lead partners holds 29.67% stake, together accounting for 89% of the equity share. Fertilizer Corporation of India Limited (FCIL) and Hindustan Fertilizer Corporation Limited (HFCL) are the other two partners in the venture. FCIL and HFCL together hold the remaining 11% share. The article notes that this 11% is against their usable assets, opportunity cost and the use of land on a lease basis at HURL’s plant locations.

Urea plants across three states anchor the operating footprint

HURL was formed to set up urea plants in Sindri (Jharkhand), Barauni (Bihar) and Gorakhpur (Uttar Pradesh). These locations are repeatedly referenced as the three plant sites linked to the JV’s formation and asset base. The shareholding arrangement also ties FCIL and HFCL’s participation to land and other contributions at these sites. This geographic spread matters for investors evaluating execution, logistics, and the policy environment that typically surrounds fertiliser manufacturing. While the article does not provide production or capacity numbers, it clearly establishes the three-plant footprint as central to HURL’s story.

How the disinvestment proposal moved forward

The Department of Fertiliser (DoF) communicated to the lead promoters in October 2022 to explore the possibility of disinvestment in HURL. Following this communication, IOCL, NTPC and CIL obtained approvals from their boards and respective ministries for disinvestment. The official source said the plan is to conduct the public offering within FY2026-27 as part of the asset monetisation roadmap. The proposed sale size cited is 10-11% stake, with a fundraising expectation of ₹5,000-₹6,000 crore. The article does not specify the issue structure, valuation, or whether the stake sale would be split among the shareholders.

Approvals and the role of DIPAM

The proposed listings, including HURL, would require approval from the Department of Investment and Public Asset Management (DIPAM), the article said. This step is a key process gate for public sector monetisation transactions, particularly where government-owned or state-run entities are involved. The mention of DIPAM also places the IPO within the formal pipeline of the Centre’s divestment and asset monetisation framework. The timeline in the article is described as “the present fiscal 2026-27”, but it is also linked to other potential listings that may share the same window.

National Monetisation Pipeline targets provide the backdrop

The government launched the second phase of the National Monetisation Pipeline with a target of monetising assets worth ₹1,673,000 crore by 2030, the article said. Under this programme, the power sector is expected to contribute around ₹276,000 crore. HURL’s IPO is framed as a monetisation action aligned to this broader agenda. Separately, the Union ministry of power has drafted an asset monetisation plan totalling up to ₹80,000 crore under NMP 2.0 for FY2025-26 to FY30. While HURL is a fertiliser joint venture, the article links the listing plan to NTPC’s monetisation targets and the power sector-led monetisation roadmap.

Other PSU listings mentioned alongside HURL

Along with HURL, the monetisation plan also includes listing of NTPC’s subsidiaries THDC India Ltd and North Eastern Electric Power Corporation Ltd (NEEPCO). The official source said that one of these two is expected to be listed in FY27 along with HURL. In the draft asset monetisation plan cited, the ministry proposed listing three PSEs: THDC, NEEPCO and SGEL, the green energy arm of SJVN. The ministry estimated an offering of ₹1,000 crore each for THDC and NEEPCO, and ₹2,000 crore for SGEL. NTPC currently has a controlling stake in THDC and NEEPCO, as per the article.

Tender snapshot highlights on-ground operations at Gorakhpur

Separate from the IPO development, the article includes a tender reference for operations at HURL Gorakhpur. The Department of Fertilizers invited bids for “Operation and Maintenance of Effluent Sewage Treatment Plant” at HURL Gorakhpur, under Bid Number GEM/2025/B/6827012. The tender covers operation and maintenance for the ETP, STP and ZLD plant at the Fertilizer Township, Gorakhpur (273007). The bid submission window opens on December 19, 2025 at 12:00 PM and closes on December 20, 2025 at 1:51 PM. The tender was officially dated November 7, 2025, and it requires an earnest money deposit of ₹0.11665 crore.

Key facts table

Why the HURL IPO matters for PSU monetisation tracking

The HURL IPO plan adds a fertiliser-linked listing to a set of proposed market actions largely anchored in power-sector entities. For investors, the key near-term signals in the article are process-driven: board and ministry approvals have been obtained by the three lead promoters, and the next gating item cited is DIPAM approval. The stake sale size and fundraising range are clearly stated, which helps benchmark the issue as a mid-to-large PSU-related divestment by Indian market standards. The article also places the deal alongside expected listings of THDC and NEEPCO, with a stated possibility that one of them could be listed in FY27 along with HURL.

Conclusion

HURL’s proposed FY2026-27 IPO is being prepared as a 10-11% stake disinvestment targeted to raise ₹5,000-₹6,000 crore, according to an official source. The move sits within the Centre’s asset monetisation roadmap and would require DIPAM approval. Alongside HURL, the same monetisation discussion includes potential listings of THDC and NEEPCO, with one of them expected in FY27. The next concrete milestones, as indicated in the article, are the necessary government approvals and further steps needed to take the proposed listings to market.