Government to launch 4th tranche of Bharat-22 ETF on October 3, expects to raise Rs 8,000 crore

By: |
Published: September 27, 2019 8:48:20 PM

The government will launch fourth tranche of Bharat-22 ETF on October 3, which will help garner up to Rs 8,000 crore from investors, sources said. They added that the issue will open for anchor investors on October 3 and for other institutional and retail investors, the next day.

The investors would get a 3 per cent discount over the issue price

The government will launch fourth tranche of Bharat-22 ETF on October 3, which will help garner up to Rs 8,000 crore from investors, sources said. They added that the issue will open for anchor investors on October 3 and for other institutional and retail investors, the next day. The investors would get a 3 per cent discount over the issue price.

“The offer is likely to have a base issue size of Rs 2,000 crore, with a green-shoe option to retain another Rs 6,000 crore, taking the total amount to Rs 8,000 crore,” a source privy to the development said.

The decision has been taken after receiving robust response for earlier stake sale by the government in the product.

The government has so far raised around Rs 35,900 crore through the Bharat-22 Exchange Traded Fund — Rs 14,500 crore was garnered in November 2017, another Rs 8,400 crore was mopped up in June 2018 and Rs 13,000 crore in February this year.

Proceeds from the ETF will help the government meet its disinvestment target of Rs 1.05 lakh crore for the current financial year.

The Central Public Sector Enterprises that are part of the Bharat-22 ETF include ONGC, IOC, SBI, BPCL, Coal India and Nalco.

Other constituents are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL, NLC India, Axis Bank, ITC and L&T.

Only three public sector banks — SBI, Indian Bank and Bank of Baroda — figure in the Bharat-22 index.

Earlier this month, ICICI Prudential Mutual Fund, which manages the ETF, had filed the draft papers regarding the issue with capital markets regulator Sebi.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Kotak Mahindra Bank raises Rs 7,442 crore, shares jump 3%, but this brokerage firm isn’t impressed
2Yes Bank share price gains 4% after Madhu Kapur group steps down as promoters
3Gold prices rise today as US riots trigger safe-haven demand; silver rates gain 23% in May