The Government of India is accelerating its public sector asset monetisation drive with the planned IPO of Hindustan Urvarak & Rasayan (HURL). According to reports, the government aims to raise ~INR 5,000 – 6,000 crore by offloading a 10-11% stake in the company during the current fiscal year.

HURL IPO & Disinvestment Framework

HURL is a joint venture between three state-run energy and mining giants: NTPC, Indian Oil (IOCL), and Coal India (CIL).

• Promoter Holding: Each of the three promoters currently holds a 29.67% stake (~89% combined).
• Other Partners: The remaining 11% is held by Fertilizer Corporation of India (FCIL) and Hindustan Fertilizer Corporation (HFCL).

The disinvestment plan has already secured in-principle approval from the respective company boards and ministries. Final clearance from the Department of Investment and Public Asset Management (DIPAM) is expected shortly.

Operational Capacity and Infrastructure

Established in 2016 to revive shuttered fertilizer units, HURL operates three major gas-based urea plants:

• Locations: Gorakhpur (Uttar Pradesh), Barauni (Bihar), and Sindri (Jharkhand).
• Capacity: Each unit produces 1.27 million metric tonnes per annum (MMTPA).
• Total Output: The combined annual capacity exceeds 3.8 million metric tonnes, serving fertilizer demand across 17 states.

Hindustan Urvarak & Rasayan IPO: Financial Performance

According to the HURL FY25 annual report, the company has maintained a steady profit trajectory. Analysts are suggesting that HURL’s valuation will be benchmarked against listed peers such as Rashtriya Chemicals & Fertilizers (RCF) and Fertilizers and Chemicals Travancore (FACT).

• Current Multiples: As of early May 2026, RCF was trading at a P/E ratio of approximately 25x, while FACT stood at roughly 18x.

Broader PSU Monetization Roadmap

The HURL listing is part of a larger strategy by NTPC to unlock value from its subsidiaries. The government is also planning the IPOs of:

• THDC India IPO: A 75:25 joint venture between NTPC and the UP government (4.35 GW capacity).
• NEEPCO IPO: A wholly-owned NTPC subsidiary (2.05 GW capacity).

Read Also: Upcoming IPOs with Shareholders Quota

At least one of these power-sector subsidiaries is expected to list alongside HURL in FY27.

HURL IPO aligns with the second phase of the National Monetisation Pipeline (NMP), which targets the monetisation of public assets worth INR 16.73 lakh crore by 2030. The focus remains on strengthening domestic fertilizer security and generating capital for infrastructure expansion.

Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.