disinvestment

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Disinvestment

A reduction in capital investment reflected by a decrease in capital goods and a company's decision not to replace depleted capital goods.

Disinvestment

The sale or elimination of a department, subsidiary, or any other major investment. Disinvestment is most common when a company must raise capital quickly to finance new operations or pay a certain liability, or when it determines that the investment is unlikely to become or remain profitable in the future.

disinvestment

Divestiture, liquidation, or sale of a segment of a firm. Disinvestment may occur for a number of reasons including a poor outlook for a particular line of business or a firm's need to raise additional capital for other more promising segments of its business.

disinvestment

  1. 1a decrease in a country's CAPITAL STOCK that occurs when there is insufficient new INVESTMENT to cover CAPITAL CONSUMPTION/DEPRECIATION

    (capital lost because of wear and tear).

  2. the sale or closure by a firm of part of its business. See DIVESTMENT.
References in periodicals archive ?
As in the case of several other CPSEs, employee protests and ongoing litigations were the major hurdles before the disinvestment of its assets.
For the first time, we managed to close down five companies without inviting employee wrath by offering attractive severance packages" The zombie existence of Hindustan Photo Films - the fourth highest loss-making entity after BSNL, Air India and MTNL (which together accounted for Rs 16,987 crore losses, or 62 per cent of the cumulative losses of 77 CPSEs in 2004/15) - is proof of how ineffective successive governments' plans and programmes for restructure, revival or disinvestment of PSEs have been.
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has given its approval for disinvestment of 10 per cent paid- up equity of Housing and Urban Development Corporation ( HUDCO), an official statement said.
The government has set a disinvestment target of Rs 56,500 crore for this fiscal.
Historically, majority disinvestments have been typically made to strategic partners.
The experience suggests that fiscal convenience was the prime mover of such disinvestments.
The company was facing financial crunch and Patel had forwarded the disinvestment proposal to the cabinet.
For the remaining two months of this financial year, four disinvestments can still happen (see box, The Line-up Up To March).
The most important of these is Arun Shourie, the minister for disinvestment, as privatization is known in India.
This generally was not the case for the South African disinvestments, especially after 1984 and 1985.
In order to attract more investors, Balachander suggests that the government should give a discount of 5-10 per cent to retail investors in the disinvestment process.
New Delhi, Oct 19 (ANI): The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for disinvestment of five percent paid up equity capital of National thermal Power Corporation (NTPC), out of Government's shareholding, in the domestic market through book building process.