MSEDCL IPO: Electricity distributor targets end-2026 listing; agri biz demerger by April

MSEDCL IPO: Power distributor Maharashtra State Electricity Distribution Company Ltd (MSEDCL) is preparing to launch its initial public offering by December 2026 after demerging its agriculture unit by April, a top official has said.

The agriculture business will be carved out as a separate firm, not a subsidiary. This move will ensure that the agri segment's liabilities do not remain on the balance sheet of the core distribution utility, Chandra said.

MSEDCL carries total dues of about ₹96,000 crore, of which around ₹76,000 crore relates to unpaid agricultural consumption, he said.

The accumulation of these arrears has led to higher working capital borrowings and financial strain, despite the core distribution business being operationally viable, Chandra added.

Post-demerger in April, the residual entity will retain debt of roughly ₹20,000 crore, which the company considers sustainable, he added.

MSEDCL aims for December 2026 listing, says chairman

Following the carve-out, the company will undertake a balance sheet clean-up and debt restructuring before launching the IPO process. The listing is targeted for completion by December this year, Chandra said.

The government is planning to dilute up to a 10% stake in the company through the IPO, he said, adding that IPO proceeds are likely to be deployed towards capital expenditure in transmission and distribution infrastructure.

Maharashtra Chief Minister Devendra Fadnavis had announced the state's intent to list the energy utilities, including MSEDCL and also the generation and transmission arms, in December 2025. He hinted that the process will start with the listing of the transmission company in 2026.

Chandra said that discussions with the state government are underway to address agriculture-related arrears. Once resolved, the restructuring is expected to strengthen financial metrics and improve valuation prospects at the time of listing.