Methods of Disinvestment of CPSEs List

  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.