PSU Watch logo

| IRCON emerges as the lowest bidder in NHAI & Chennai Metro projects |   | Govt aiming for 10% reduction in India’s crude oil import by next year: PNGRB Secretary |   | Mahanagar Gas Ltd hikes gas prices for 3rd time in six weeks |   | India to allow international flight operations from Dec 15 |   | RBI accepts 21 recommendations on ownership of private banks |  

Govt planning to launch sixth tranche of CPSE ETF on July 18

The issue is expected to open on July 18 for anchor investors and on July 19 for other investors, an official said

Govt planning to launch sixth tranche of CPSE ETF on July 18
Govt planning to launch sixth tranche of CPSE ETF on July 18

New Delhi: The government is planning to launch the sixth tranche of CPSE Exchange Traded Fund (ETF) on July 18 with an aim to raise up to Rs 10,000 crores, an official said. The CPSE ETF tracks shares of 11 public sector companies — ONGC, NTPC, Coal India, IOC, Rural Electrification Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN.

What’s on offer?

“The follow-on fund offer (FFO) 5 will have a base issue size of Rs 8,000 crore with an option to retain over-subscription of another Rs 2,000 crore,” the source added. The issue is expected to open on July 18 for anchor investors and on July 19 for other investors, the official said.

ALSO READ: Sri Lankan delegation visits NTPC Dadri

The backdrop

Through the previous five tranches of the CPSE ETF, the Centre raised a total of Rs 38,500 crores. The first tranche in March 2014 yielded Rs 3,000 crores, the second one in January 2017 yielded Rs 6,000 crores, Rs 2,500 crore came from the third in March 2017, Rs 17,000 crore came in November 2018 and Rs 10,000 crore was raised in March 2019. For the financial year 2019-20, the government had earlier planned to keep the disinvestment target around Rs 90,000 crores but later raised it to Rs 1.05 lakhs.

(PSU Watch- India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)