The Union Cabinet — chaired by Prime Minister Narendra Modi — is likely to approve a proposed initial public offer (IPO) by state-run India Infrastructure Finance Company (IIFCL) at its meeting on Wednesday, sources told Zee Business.

The news comes at a time when India Infrastructure Finance Company, a public sector undertaking (PSU), has announced its intention to launch an IPO.

The government plans to sell part of its 100 per cent stake in IIFCL through the proposed IPO, which is anticipated to unlock value in the country’s infrastructure financing space by inviting retail and institutional investors to participate in the company.

IIFCL is a government-owned financial institution that caters to the long-term financing needs of the country’s infrastructure space.

It is among the most diversified PSU infrastructure lenders in terms of eligible infrastructure sub-sectors and product offerings.

It is also active in providing policy inputs in the infrastructure financing space to the central government through various forums.

The central government is learned to be preparing several upcoming IPOs amid renewed investor enthusiasm in the country’s capital markets.

It has been one of the busiest years for the country’s capital markets in terms of the number of IPOs.

As of date, as many as 86 mainboard and more than 100 SME IPOs have been launched on Dalal Street so far this year.

As many as 144 total newly-launched stocks trade at premiums over their respective issue prices, according to exchange data.

Also, 130 IPOs have debuted in the secondary market with listing gains.

The last central public sector enterprise (CPSE) to launch an IPO in 2024, which was followed by the entry of state-run insurance behemoth LIC’s shares in the country’s listed space. That was the country’s largest IPO to date, raising over Rs 21,000 crore.