Divestment

Divestment or divesting is the opposite of investment. It refers to the process of selling assets, divisions, or investments in a company to maximise the parent company’s value. Generally, a company proceeds with divestment when a division or asset of a subsidiary is not performing as expected. 

This process helps streamline the operations of a company. Divestment also happens in case of regulatory or legal actions like bankruptcy. An example of divestment is the privatisation of IDBI Bank. The government is planning to divest the bank by offering foreign and private banks a majority stake in the bank.