Disinvestment can be done in the following ways

● Initial Public Offering (IPO): an offer of shares by an unlisted PSU to the public for the first time.

● Follow-on Public Offering (FPO): also known as Further Public Offering, it's an offer of shares by a

listed PSU.

● Offer for sale (OFS): shares of a PSU are auctioned on the platform provided by the stock exchange. This mode has been used extensively by the government since 2012.

● Institutional Placement Programme (IPP): under this, only selected financial institutions are allowed

to participate and the government stake is offered to only such institutions. E.g., mutual funds,

insurance, and pension funds such as LIC etc.

● CPSE Exchange Traded Fund (ETF): Through this route, the government can divest its stake in various PSUs across diverse sectors through a single offering. This mechanism allows the government to monetize its shareholding in those PSUs which form part of the ETF basket.

● Cross-holdings: in this method, one listed PSU takes up the government stake in another listed PSU.