MSEDCL Picks Banks for India IPO Worth Up to $1 Billion
(Bloomberg) -- Maharashtra State Electricity Distribution Co., the power distribution company in India’s richest state, has shortlisted six investment banks for a planned initial public offering that could raise between $500 million and $1 billion, people familiar with the matter said.
The utility known as MSEDCL has selected SBI Capital Markets Ltd., IIFL Capital Services Ltd., ICICI Securities Ltd, Motilal Oswal Investment Advisors Ltd., IDBI Capital Markets & Securities Ltd. and HDFC Bank Ltd. as advisers for the proposed share sale, the people said, asking not to be identified because the deliberations are private. The company could appoint more banks before formally launching the process, the people said.
The IPO is expected to comprise a mix of newly issued shares and an offer for sale, with state-owned parent MSEB Holding Co. likely to dilute about 10% of its stake, the people said.
Deliberations are ongoing, and key details including the size, valuation and advisers of the offering remain under discussion and could change, the people said. Representatives for MSEDCL and the banks didn’t immediately respond to requests for comment.
India’s IPO market, which set records in each of the last two years, is regaining momentum after a subdued first half of 2026. Companies have raised about $5.2 billion so far this year, compared with roughly $22 billion during all of 2025. SBI Funds Management Ltd. just completed the country’s first billion-dollar offering of the year, with large deals in the pipeline including share sales by Manipal Health Enterprises Ltd., National Stock Exchange of India Ltd. and Jio Platforms Ltd.
An IPO by MSEDCL would be among India’s first listings of a government-owned electricity distribution utility and could serve as a test case for long-pending reforms in the power distribution sector.
The Maharashtra cabinet has approved a restructuring plan for the company, including a proposal for the state government to assume about 330 billion rupees ($3.5 billion) of the utility’s liabilities to strengthen its balance sheet ahead of the share sale.
MSEDCL supplies electricity to about 35 million consumers across Maharashtra and is among the largest electricity distribution utilities in Asia by number of consumers and power supplied, according to the company’s website.
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