Concept of Disinvestment

Disinvestment is the action of an organization or government selling or liquidating an asset or subsidiary. It is a process in which the public undertaking reduces its portion in equity by disposing its shareholding. The disinvestment reduces government participation in the company.

Modes of Disinvestment

  1. Initial Public Offering (IPO) – offer of shares by an unlisted Central Public Sector Enterprise (CPSE) or the Government out of its shareholding or a combination of both to the public for subscription for the first time.
  2. Further Public Offering (FPO) – offer of shares by a listed ....
Do You Want to Read More?Login/Register

Related Content