‘Bharat 22’ ETF to raise over ₹8,000 cr

The Hindu Business Line - - MARKET WATCH -

The ‘Bharat 22’ Ex­change Traded Fund (ETF), com­pris­ing 22 scrips of pub­lic sec­tor un­der­tak­ings, will hit the cap­i­tal mar­ket next month to mop up over ₹8,000 crore for the gov­ern­ment.

The new fund of­fer (NFO), man­aged by ICICI Pru­den­tial Mu­tual Fund, will open for an­chor in­vestors on Novem­ber 14, while sub­scrip­tion for re­tail in­vestors would be­gin on Novem­ber 15 and con­tinue till Novem­ber 17.

An up­front dis­count of 3 per cent would be of­fered to all cat­e­gories of in­vestors, the fund house said.

“Ap­provals are in place. It is likely to open for re­tail sub­scrip­tion on Novem­ber 15,” said a Fi­nance Min­istry of­fi­cial.

Di­vest­ment tar­get

The ETF will help gov­ern­ment meet its am­bi­tious ₹72,500 crore dis­in­vest­ment tar­get for the cur­rent fis­cal.

State-owned com­pa­nies or PSUs that are part of the new ETF are ONGC, IOC, SBI, BPCL, Coal In­dia and Nalco.

It also in­cludes gov­ern­ment’s strate­gic hold­ing in Axis Bank, ITC and L&T held through SUUTI (Spec­i­fied Un­der­tak­ing of Unit Trust of In­dia).

The other Cen­tral Pub­lic Sec­tor En­ter­prises on the list are Bharat Elec­tron­ics, En­gi­neers In­dia, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL and NLC In­dia.

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

The gov­ern­ment had raised about ₹8,500 crore through the two tranches of CPSE ETF last fis­cal.

It had first launched an ETF in March 2014 and had gar­nered ₹3,000 crore. The first CPSE ETF con­sisted of scrips of 10 PSUs — ONGC, Coal In­dia, IOC, GAIL (In­dia), Oil In­dia, PFC, BEL, REC, En­gi­neers In­dia and Con­cor.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.