PSU shares public offer: Govt mulls another tranche of CPSE ETF in March | EXCLUSIVE

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Published: March 12, 2019 3:05:58 PM

The government is mulling to launch a further public offer of its CPSE ETF in the current month of March itself, in a bid to achieve its ambitious disinvestment target, a Finance Ministry official told Financial Express Online, requesting anonymity.

Invest In Bharat 22 ETF, Bharat 22 ETF, Know About Bharat 22 ETF, Key Factors Anot Bharat 22 ETF, भारत-22 एक्सचेंज ट्रेडेड फंड, भारत-22 ETF, Additional Sale, Government Raise Fund, Bharat-22 Exchange Traded Fund, Single Day Sale, Institutional, Retail Investors, ParticipateThis will be the fifth tranche overall of CPSE ETF — a basket of 11 blue-chip PSUs — and second in this fiscal year itself.

The government is mulling to launch a further public offer of its CPSE ETF in the current month of March itself, in a bid to achieve its ambitious disinvestment target, a Finance Ministry official told Financial Express Online, requesting anonymity. “The alternate mechanism for disinvestment is meeting tomorrow to decide on the pricing of CPSE ETF and its composition,” the official said.

This will be the fifth tranche overall of CPSE ETF — a basket of 11 blue-chip PSUs — and second in this fiscal year itself. Earlier, CPSE ETF’s public offer in November 2018 saw roaring success in November 2018, garnering Rs 17,000 crore from investors.

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In order to expedite the disinvestment process, last week the cabinet approved alternate mechanism to decide on the strategic sale of CPSEs. CPSE ETF was launched by the government in 2014, since when, it has so far raised Rs 28,500 crore in four tranches. It raised Rs 3,000 crore from the first tranche in March 2014; Rs 6,000 crore in January 2017; Rs 2,500 crore from the third in March 2017; and Rs 17,000 crore in November 2018 from the fourth tranche.

The CPSE ETF comprises shares of the 11 public sector undertaking companies, namely, ONGC, Coal India, IOC, Oil India, PFC, REC, Bharat Electronics, NTPC, SJVN, NLC and NBCC. Besides, the government has another ETF called Bharat 22 ETF, which was launched in November 2017 in view of its disinvestment plans. It issued third tranche of Bharat 22 ETF in February which got oversubscribed by 14 times, snapping up Rs 46,000 crore against the base offer of Rs 3,500 crore. The government has garnered Rs 56,473.32 crore so far in the current financial year as disinvestment proceeds against the budgeted estimate of Rs 80,000 crore for the financial year ending March 2019.

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