1.

O
FFER FOR SALETO
P
UBLIC

AT

FIXED

PRICE
:
In this type of disinvestment, thegovernment holds the sale of the equity shares to the public at
large at a pre determined price.Examples:-MFIL, BALCO, CMC, HTL, IBP, HZL, PPL, and
IPCL.
2. S
TRATEGIC

SALE
:
In this type, significant management rights are transferred to theinvestor i.e. majority of equity
holdings are divested. Examples: -Offer of 1 million shares of VSNL, listing of ONGC IPO.
3. I
NTERNATIONAL

OFFERING
:

This is essentially targeted at the FII (foreign institutionalinvestors). Ex:-GDR of VSNL, MTNL
etc.
4. A
SSET
S
ALE

AND
W
INDING

UP
:
This is normally resorted to in companies that are either sick or facing closure. This is done by
the process of auction or tender. Ex:-Auction of sick PSUs.
O
BJECTIVES

OF
D
ISINVESTMENT
:
Privatization intended to achieve the following:

Releasing large amount of public resources

Reducing the public debt

Transfer of Commercial Risk

Releasing other tangible and intangible resources

Expose the privatised companies to market discipline

Wider distribution of wealth

Effect on the Capital Market

Increase in Economic Activity

D
ISINVESTMENT
P
ROCESS
:M
ETHODS

ADOPTED

IN
I
NDIA

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FMG 18 B, GROUP-IVPage 19