ETFs funds account for 82% of selloff proceeds: DIPAM1 min read . Updated: 24 Nov 2019, 02:19 PM IST
- The Bharat 22 ETF under its FFO 2 mopped up ₹4,368.80 crore
- CPSE ETF under FFO sixth tranche collected ₹10,000.32 crore in this financial year
NEW DELHI : The government has so far garnered ₹17,364.26 crore from disinvestment, but around 82% ( ₹14,369.03 crore) of it has been accrued from the index funds and not from stake sales, showing the reliance on funds have worked out well for selloff as a strategy.
The Bharat 22 ETF under its FFO 2 mopped up ₹4,368.80 crore and CPSE ETF under FFO sixth tranche collected ₹10,000.32 crore in this financial year, as per the Department of Investment and Public Asset Management (DIPAM) data.
The money came from initial public offering of Rail Vikas Nigam ( ₹475.89 crore, IRCTC's IPO ( ₹637.97 crore) and sale of enemy property ( ₹1,882.21 crore), as per DIPAM figures on the proceeds.
The Bharat Petroleum Corporation Ltd (BPCL), the Container Corporation (Concor), the Shipping Corporation (SCI) privatisation are due for FY20. So is Air India.
Bharat 22 ETF's fourth tranche was subscribed 12 times. The top five holdings were L&T, ITC, SBI, Axis Bank and NTPC that accounted for 56 per cent of the portfolio. The Bharat 22 ETF has a concentrated portfolio of 22 stocks.
The fourth tranche of Bharat 22 ETF drew ₹23,500 crore bids. "Bharat-22 FFO2 was oversubscribed by almost 12 times over base issue size of ₹2,000 crore and received ₹23,500 crore. The central government retained ₹4,368 crore from the offer.
The ₹10,000 crore CPSE ETF saw equal interest earlier. The government exercised the green-shoe option taking the offer size to ₹11,500 crore. CPSE ETF runs a concentrated portfolio with a handful of stocks having weights as high as 20 per cent on the underlying index. The portfolio is concentrated towards the energy and oil sectors.
The CPSE ETF tracks shares of 11 central public sector enterprises (CPSEs) -- ONGC, NTPC, Coal India, IOC, Rural Electrification Corp, Power Finance Corp, Bharat Electronics, Oil IndiaNSE , NBCC India, NLC India and SJVN.
The government aims to raise ₹1.05 lakh crore through disinvestment in 2019-20, up from ₹85,000 crore raised in FY19.
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