As per the news published in major financial newspapers, the Union Govt is planning to divest 20% stake in the state-owned Hindustan Copper Ltd. What does it really mean?

The Govt will bring 20% more capital into the company.

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The Govt will sell 20% of its total share to the public

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The Govt is planning to purchase 20% shares in the state-owned company.

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20% of the total shares in Hindustan Copper Ltd. will be sold to its employees

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Solution

The correct option is C The Govt will sell 20% of its total share to the public
As per the news published in major financial newspapers, the Union Govt is planning to divest 20% stake in the state-owned Hindustan Copper Ltd. It means that Government of India will sell 20% of its total share to the public. In simple words, it specifies that Government will take care of 80% of its share and 20% share will be sold to the public.

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