Centre slashes its disinvestment target

The government has revised its disinvestment target from Rs 30,000 crore to Rs16,000 crore

Update: 2014-03-21 01:34 GMT
Centre has revised the target because some disinvestment plans could not take off.

Hyderabad: The government has revised its disinvestment target from Rs 30,000 crore to Rs16,000 crore for the fiscal 2013-14.

According to Sangita Choure, joint secretary, department of disinvestment, the Centre has revised the target because some disinvestment plans could not take off.

Speaking at the launch of CPSE ETF by Goldman Sachs here, Ms Choure said that this ETF is expected to garner around Rs 3,000 crore during the NFO period. “This means we will meet our revised target of Rs16,000 crore,” she added.

Given that blue-chip CPSE investments are enhancing equity markets in India and boost corporate governance in the country, Ms Choure said that retail investors (investing in) will determine the price mechanism.

However, stigma about investing in PSU stocks persists among retail investors as they stay wary of these stocks.

To clear these apprehensions and get more retail investors to invest in CPSE ETFs, Goldman Sachs is wooing them with bonus and discounts.

The CPSE exchange traded fund offers a five per cent discount on the reference market price of the underlying shares of the CPSE index during the NFO period.

Till Wednesday, the CPSE ETF raised a total of '835 crore from seven institutional investors under the portion reserved for anchor investors.

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