There are primarily three different approaches to disinvestments (from the sellers’ i.e. Government’s perspective):
Minority Disinvestment: A minority disinvestment is one such that, at the end of it, the government retains a majority stake in the company, typically greater than 51%, thus ensuring management control.
Historically, minority stakes have been either auctioned off to institutions (financial) or offloaded to the public by way of an Offer for Sale. The present government has made a policy statement that all disinvestments would only be minority disinvestments via Public Offers.
Examples of minority sales via auctioning to institutions go back into the early and mid-90s. ....
