MSEDCL to Demerge Agri Business, Targets IPO by Year-End 2026

Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has outlined a major restructuring plan ahead of its initial public offering (IPO), aiming to complete a demerger of its agricultural load segment by April and list the company by December 2026.

The state-run power distributor plans to carve out its agricultural operations into a separate firm to clean up its balance sheet, which is weighed down by about ₹96,000 crore in unpaid dues. Of this, roughly ₹76,000 crore stems from agricultural consumption, with the remainder from government and other categories. The move is expected to make the core distribution business financially sustainable post-demerger.

MSEDCL Managing Director Lokesh Chandra said the new agri-focused entity will begin operations from April 1, 2026, and the remaining utility will work on reducing its debt to levels serviceable from internal earnings ahead of the market listing. The planned IPO involves diluting up to 10 per cent of the government stake, with proceeds earmarked for modernising transmission and distribution infrastructure, including smart meters.

In parallel, MSEDCL aims to meet agricultural power demand entirely through local solar distributed renewable energy projects by the end of the year, as part of its operational transformation.

The demerger and clean-up efforts are intended to strengthen investor appeal and enhance financial metrics ahead of the proposed December listing.