What are "Equity Carve-Outs"? Explain with suitable examples.

Equity carve-outs are referred to a percentage of shares of the subsidiary company being issued to the public. This method leads to a separation of the assets of the parent company and the subsidiary entity. Equity carve-outs result in publicly trading the shares of the subsidiary entity. In other words, a company takes out one of the businesses and creates a separate company to handle that part of the business. India's largest engineering and Construction Company Larsen and Tourbo (L&T) adopted "asset-lights strategy" by separating business units into independent subsidiaries by selling a stake in business. The Company, which is considered a corporate proxy for the broader economy, divested its assets as a way to generate capital for investing in fresh projects. In 2017, the Government of India divested 10 per cent stake in Coal India Limited through the Offer-For-Sale (OFS) route at ₹358 per share and brought its holding to 79.65 per cent.