New Delhi: The current share market scenario has turned out to be a major cause of concern for the Central Government as no public sector company is willing to launch its shares in the fragile market. Therefore, it has become difficult for the government to achieve its current financial year disinvestment target of Rs 40,000 crore.

According to sources, “The Disinvestment Department is planning to initiate a dialogue with selected Foreign Institutional Investors (FII), as it believes that the latter can perk up the market out of the current scenario.”

The market has witnessed a reduction in the FII investment from the very beginning of the ongoing financial year. From April 2011 to present day, the FIIs have pulled out Rs 4000 crore, making it one of the reasons for declining confidence of investors in the market.

The public sector companies such as ONGC, SAIL and Hindustan Copper were slated to launch their public issue this year but refrained from doing so as the stock market continues to remain volatile. ONGC and SAIL have altered their plans of launching their issues on four occasions due to erratic share market.

In the current fiscal, government launched the public issue of Power Finance Corporation but the company failed to attract investors and the issue managed a lackluster subscription of 3.58 times only.

The fate of PFC alerted other companies from launching their public issues and making ONGC and SAIL postpone their public issues.

 

(JPN/Bureau)