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Second tranche of Bharat-22 ETF on 19 June; government to get up to Rs 8,400 cr

New Delhi: The Finance Ministry will launch the second tranche of Bharat-22 exchange traded fund (ETF) on 19 June which will help raise up to Rs 8,400 crore from the markets.

The issue will open for anchor investors on 19 June and for other institutional and retail investors the next day. The ETF follow on offer will remain open till 22 June.

The investors would get a 2.5 percent discount over the issue price.

“The government is aiming at mopping up Rs 6,000 crore, with a green-shoe option to retain another Rs 2,400 crore from the Bharat-22 ETF follow on offer to be launched on 19 June,” a Finance Ministry official said.

This offer would also help the government in meeting the minimum public holding norm in PSUs like Coal India.

Representative image. Reuters

Representative image. Reuters

The government had in November last year launched Bharat-22 ETF comprising shares of 22 companies, including public sector undertakings (PSUs), public sector banks, ITC, Axis Bank and L&T.

The fund had garnered bids to the tune of Rs 32,000 crore, although the government retained only Rs 14,500 crore.

The state-owned companies or PSUs that are part of the new Bharat ETF-22 include ONGC, IOC, SBI, BPCL, Coal India and Nalco.

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 plans to raise Rs 80,000 crore in the current fiscal from disinvestment, lower than over Rs 1 lakh crore raised last year.

On Tuesday through a public notice, the government said it will divest 12 percent stake in railway consultancy firm RITES through an IPO which will be launched on 20 June.

Prior to the launch of Bharat-22 ETF which has a diversified portfolio, the government had floated the CPSE ETF comprising stocks of 10 bluechip PSUs -- ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, Bharat Electronics, REC, Engineers India and Container Corporation of India.

Through the CPSE ETF, the government had raised Rs 11,500 crore in three tranches -- Rs 3,000 crore from the first tranche in March 2014, Rs 6,000 crore from the second tranche in January 2017 and Rs 2,500 crore from the third tranche in March 2017.

Updated Date: Jun 13, 2018 13:29 PM

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