Mumbai/ Delhi: The government is seeking to raise around $500 million by selling partial stakes in 10 state-owned companies via an exchange traded fund that will be operated by Goldman Sachs’ asset management unit. The Central Public Sector Enterprises ETF will start accepting subscriptions starting on Tuesday with an aim to raise as much as 30 billion rupees by March 21.
The ETF will target mainly retail investors, although the fund will also be sold to institutional and foreign investors. The ETF is an important part of the centre’s target to sell stakes in state-owned companies worth 160.3 billion Indian rupees by the year ending March so India can meet its revised fiscal deficit target of 4.6 percent of gross domestic product.
“This ETF will give the centre a new vehicle to sell stakes,” said Alok Tandon, joint secretary in the Department of Disinvestment at a news conference.
