Methods of disinvestment of CPSEs

  1. Initial Public Offering (IPO) – offer  of shares by an unlisted 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 CPSE or the Government out of its shareholding or a combination of both to the public for subscription.
  3. Offer for sale (OFS) of shares by Promoters through Stock Exchange mechanism – method  allows auction of shares on the platform provided by the Stock Exchange; extensively used by the Government since 2012.
  4. Strategic sale - sale of substantial portion of the Government share holding of a central public sector enterprise (CPSE) of upto 50%, or such higher percentage as the competent authority may determine, along with transfer of management control.
  5. Institutional Placement Program (IPP) – only Institutions can participate in the offering.
  6. CPSE Exchange Traded Fund (ETF) –Disinvestment through ETF route allows simultaneous sale of GoI's stake in various CPSEs across diverse sectors through single offering. It provides a mechanism for the GoI to monetize its shareholding in those CPSEs which form part of the ETF basket.