Govt to launch fourth tranche of Bharat-22 ETF in Oct

New Delhi: The government is looking to launch the fourth tranche of Bharat-22 ETF in October, sources said on Thursday. The Centre has entrusted ICICI Prudential Mutual Fund the task of filing draft papers with markets regulator SEBI. The decision has been taken after the previous stake-sale by the government got a robust response. “The fourth tranche of Bharat-22 ETF may hit the markets next month,” a source aware of the development said. ICICI Prudential Asset Management Company has already filed a ‘Supplement To Scheme Information Document’ with Sebi on Wednesday for the ETF FFO 2.

Which PSUs are on the list?

The public sector undertakings (PSUs) that are on the list this time include, Oil & Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC), State Bank of India (SBI), Bharat Petroleum Corporation Limited (BPCL), Coal India and National Aluminium Company (NALCO). Other PSUs are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PowerGrid, NLC India, Axis Bank, ITC and L&T. The list features only three public sector banks — SBI, Indian Bank and Bank of Baroda.

The backdrop

The government has so far raised Rs 26,400 crore through the first three tranches of Bharat-22 ETF — Rs 14,500 crore was garnered in November 2017, another Rs 8,400 crore was mopped up in June 2018 and Rs 3,500 crore in February this year. The proceeds from the ETF will be used by the Centre in meeting its disinvestment target for FY2019-20 — Rs 1.05 lakh crore.