27 November 2010
Hi, can someone explain me that in cases of block deals by Cos & dis-investment by govt, do they issue new or fresh shares to the shareholders? or do they sell existing shares?
19 December 2010
block deals is different from disinvestment. In block deals, a large lot of shares is transacted over the stock exchange and hence termed so.
Disinvestment can be either by way of "offer for sale" in which the existing shareholder (govt) sells shares in public or issue of fresh shares to public. Earlier disinvestment by way of selling stake (shares) to non- PSU company was in vogue.
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