Divestment occurs when a company sells off some or all of its assets or subsidiaries. While most divestment decisions are deliberate efforts to streamline operations, forced selling of assets could result from regulatory or legal action such as bankruptcy.

What is the reason for disinvestment?

The government chooses a disinvestment strategy to reduce the fiscal burden and raise money to meet public needs. They may also be done to privatise the assets. Disinvestment can realise the long-term growth of the country.

What do you mean by divestment and how does it occur?

Divestment is the method of selling subsidiary properties, investments, or divisions to increase the parent company's value. Often known as the divestiture, it is the reverse of an acquisition which is generally achieved when the asset or division of the company does not meet expectations.