Divestment in major state-run firms is set to perk up the IPO space, with about six PSUs including Air India, BSNL, Oil India and NHPC, gearing up to sell equity sale in the primary market.

Civil Aviation Minister Praful Patel on Monday said that the government would consider an initial public offer for Air India. This is the first indication for an IPO by a public

sector entity ever since the Congress-led UPA government assumed office for its second term and the Prime Minister hinted at divestment in PSUs in the union budget.

Besides, the market is also hopeful about a mega IPO from state-run telecom firm BSNL. Asked about it, Communications and IT Minister A Raja said that he would ask the BSNL management to talk to the employee unions about the mega IPO of the state-run telecom major.

BSNL's plan for a 10-billion dollar (over Rs 45,000 crore) IPO ran into rough weather last year due to opposition from the unions. The public issues of some other PSUs like Oil India and NHPC have also been on the back-burner for some time, mainly because of adverse market conditions, but could be revived soon because market conditions are better.

The government has also hinted at IPOs for other PSUs like railway consultancy firm RITES and Ircon International.