Active Stocks
Tue Mar 19 2024 15:58:41
  1. Tata Consultancy Services share price
  2. 3,977.55 -4.03%
  1. Tata Steel share price
  2. 148.65 -0.64%
  1. Bharti Airtel share price
  2. 1,227.85 0.23%
  1. Power Grid Corporation Of India share price
  2. 258.95 -2.28%
  1. ITC share price
  2. 409.50 -1.89%
Business News/ Markets / Stock Markets/  Govt plans to garner 10,000 cr from 7th tranche of CPSE ETF
BackBack

Govt plans to garner ₹10,000 cr from 7th tranche of CPSE ETF

Central Public Sector Enterprises ETF runs a concentrated portfolio with a handful of stocks having weights of as high as 20% on the underlying index
  • Through the earlier six tranches of the CPSE ETF, the government has already raised ₹49,500 cr
  • The issue is likely to open for anchor investors on 30 January (Photo: Reuters)Premium
    The issue is likely to open for anchor investors on 30 January (Photo: Reuters)

    New Delhi: The government is planning to raise over 10,000 crore from CPSE ETF's seventh tranche that would be launched by the end of the current month, according to market sources.

    The issue is likely to open for anchor investors on 30 January and for other institutional and retail investors, the next day, they added.

    Central Public Sector Enterprises ETF runs a concentrated portfolio with a handful of stocks having weights of as high as 20 per cent on the underlying index. The portfolio is concentrated towards the energy and oil sector.

    Nippon Life India Asset Management, formerly known as Reliance Nippon Life Asset Management, is managing the CPSE ETF on the government's behalf and has already filed 'scheme information document' for CPSE ETF FFO 6 with markets regulator Sebi.

    Sources privy to the development said the offer will have a base issue size of 10,000 crore. Besides, there will be a green-shoe option.

    The decision to launch seventh tranche of CPSE Exchange Traded Fund (ETF) has been taken after receiving robust response for earlier stake sale by the government in the product.

    Through the earlier six tranches of the CPSE ETF, the government has already raised 49,500 crore -- 3,000 crore from the first tranche in March 2014, 6,000 crore in January 2017, 2,500 crore from the third in March 2017, 17,000 crore in November 2018 and 10,000 crore in March 2019 and 11,500 crore in July 2019.

    The CPSE ETF tracks shares of 11 CPSEs -- ONGC, NTPC, Coal India, IOC, REC, PFC, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN.

    The proceeds from the ETF will help the government meet its disinvestment target of 1.05 lakh crore for the current financial year. It had aimed to garner 85,000 crore through disinvestment in the preceding financial year. PTI SP HRS

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

    Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 23 Jan 2020, 06:36 PM IST
    Next Story footLogo
    Recommended For You
    GENIE RECOMMENDS

    Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

    Let’s get started
    Switch to the Mint app for fast and personalized news - Get App

    Chat with MintGenie