MSEDCL plans December 2026 IPO after agriculture demerger

Maharashtra State Electricity Distribution Company Ltd (MSEDCL) plans to launch its initial public offering (IPO) by December 2026 after carving out its agricultural load into a separate entity from April 1, 2026, Managing Director (MD) Lokesh Chandra said. The move aims to improve the discom’s balance sheet, which carries unpaid arrears of Rs 96,000 crore.

The agriculture demerger is intended to make the remaining debt sustainable and serviceable through internal accruals before listing. Chandra said the new agriculture entity will be operational from April 1, 2026, while the company works to reduce debt so it can be serviced from earnings, resulting in a cleaner balance sheet.

Agriculture dues account for Rs 76,000 crore of arrears. Government departments owe Rs 12,000 crore, while other consumer categories account for Rs 10,000 crore. The arrears have increased working capital borrowings, which are expected to ease after the demerger.

MSEDCL plans to supply the entire agricultural load through solar power by year-end using distributed renewable energy (DRE) projects located near substations. The demerger and balance sheet restructuring are expected to be completed ahead of the proposed December IPO.

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