MSEDCL plans year-end IPO, to hive off agricultural load into new firm

Maharashtra discom to separate agri load, shift it to solar DRE projects and clean up its balance sheet before launching an IPO targeting up to 10% government stake dilution

Maharashtra State Electricity Distribution Company Ltd (MSEDCL) is aiming to carve out agricultural load in a separate company by April and go for public listing by the end of the current calendar year. 

 

The broad idea is to clean the balance sheet, which is currently reeling under unpaid arrears to the tune of ₹96,000 crore, before the launch of the IPO in December 2026. 

"We have a timeline of December for listing. For that, we are first separating agriculture load in a separate company, which will be operational from April 1, 2026. For the remaining operations, we are trying to ensure the debt level becomes sustainable so that we can service it through our own earnings. Once that is done, our balance sheet will be clean," Managing Director Lokesh Chandra told Business Standard in an interaction. 

 

He also added that by the end of the year, the entire agricultural load under MSEDCL will be met by solar power through distributed renewable energy (DRE) projects that will be set up near substations at the local level. Chandra also informed that the company's accumulated dues from the agricultural category stand at ₹76,000 crore while the government departments and other consumers account for ₹12,000 crore and ₹10,000 crore dues, respectively.

 

The accumulation of these dues has built up high working capital borrowings for the company, but the debt will come down to sustainable level after the demerger comes into effect, Chandra said. Overall the clean-up of the balance sheet and operational restructuring is set to be complete before the IPO.

 

The government is planning to dilute up to 10 per cent stake in the company through the IPO and the proceeds are expected to be used for modernisation and upgradation of transmission and distribution infrastructure, including installing of smart meters.