Q17. Consider the following statements:
1. A majority disinvestment is one such that, at the end of it, the government retains a majority stake in the company, typically greater than 51%, thus ensuring management control.
2. A minority disinvestment is one in which the government, post disinvestment, retains a minority stake in the company i.e. it sells off a majority stake.
Which of the above statements are correct?
Q17. Consider the following statements:
1. A majority disinvestment is one such that, at the end of it, the government retains a majority stake in the company, typically greater than 51%, thus ensuring management control.
2. A minority disinvestment is one in which the government, post disinvestment, retains a minority stake in the company i.e. it sells off a majority stake.
Which of the above statements are correct?
The correct option is D (d) Neither 1 nor 2
Disinvestment:
1. When Government sells its shares of a PSU, to Private Sector Company / individual.
Minority Disinvestment
1. A minority disinvestment is one such that, at the end of it, the government retains a majority stake in the company, typically greater than 51%, thus ensuring management control.
- Historically, minority stakes have been either auctioned off to institutions (financial) or offloaded to the public by way of an Offer for Sale.
- Minority sales via Offer for Sale include recent issues of Power Grid Corp. of India Ltd., Rural Electrification Corp. Ltd., NTPC Ltd., NHPC Ltd. etc.
Majority Disinvestment
1. A majority disinvestment is one in which the government, post disinvestment, retains a minority stake in the company i.e. it sells off a majority stake.
- Historically, majority disinvestments have been typically made to strategic partners.
(d) Neither 1 nor 2
Disinvestment:
1. When Government sells its shares of a PSU, to Private Sector Company / individual.
Minority Disinvestment
1. A minority disinvestment is one such that, at the end of it, the government retains a majority stake in the company, typically greater than 51%, thus ensuring management control.
- Historically, minority stakes have been either auctioned off to institutions (financial) or offloaded to the public by way of an Offer for Sale.
- Minority sales via Offer for Sale include recent issues of Power Grid Corp. of India Ltd., Rural Electrification Corp. Ltd., NTPC Ltd., NHPC Ltd. etc.
Majority Disinvestment
1. A majority disinvestment is one in which the government, post disinvestment, retains a minority stake in the company i.e. it sells off a majority stake.
- Historically, majority disinvestments have been typically made to strategic partners.
