What are the various METHODS of the Government for Disinvestment in PSU? Pls explain in detail
Solution:
7 Methods implemented to Achieve Objectives of Disinvestment in India:
(a) Public Offer: Offering shares of public sector enterprises at a fixed price through a genera prospectus.
(b) Sale of Equity: Sale of equity through auction of share amongst pre-determined clientele, whose number can be large.
(c) Offer for Sale:Offer for sale, determining the fixed price for sale of a public enterprise, inviting open bidders and accepting highest bidder’s quotation for sale.
(d) Cross Holding:In the case of cross holdings, the government would simply sell part of its shares of one PSU to one or more PSUs.
(e)Strategic Sale: Of late, Government is pursuing the strategic sale method. Under this method, the government sells a major portion (51 percent and above) of its stake to a strategic buyer and also gives over the management control
7 Methods implemented to Achieve Objectives of Disinvestment in India:
(a) Public Offer: Offering shares of public sector enterprises at a fixed price through a genera prospectus.
(b) Sale of Equity: Sale of equity through auction of share amongst pre-determined clientele, whose number can be large.
(c) Offer for Sale:Offer for sale, determining the fixed price for sale of a public enterprise, inviting open bidders and accepting highest bidder’s quotation for sale.
(d) Cross Holding:In the case of cross holdings, the government would simply sell part of its shares of one PSU to one or more PSUs.
(e)Strategic Sale: Of late, Government is pursuing the strategic sale method. Under this method, the government sells a major portion (51 percent and above) of its stake to a strategic buyer and also gives over the management control