HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
Govt to raise Rs 10,000 crore through seventh tranche of CPSE ETF
Jan-28-2020

After receiving robust response for earlier stake sale, the government has decided to launch seventh tranche of Central Public Sector Enterprises (CPSE) Exchange Traded Fund (ETF) with base issue size of Rs 10,000 crore with a greenshoe option to retain a portion of the oversubscription. The issue will open for anchor investors on January 30 and for other institutional and retail investors, the next day-- Nippon Life India Asset Management -- which has been mandated to manage the CPSE ETF on behalf of the government. It added that the investors would get a 3% discount over the issue price.

The proceeds from the ETF will help the government meet its disinvestment target of Rs 1.05 lakh crore for the current financial year. It had aimed to garner Rs 85,000 crore through disinvestment in the preceding financial year. Besides, CPSE ETF runs a concentrated portfolio with a handful of stocks having weights of as high as 20% on the underlying index. The portfolio is concentrated towards the energy and oil sector.

Retail investors can invest a minimum of Rs 5,000, while non-institutional investors and qualified institutional buyers (other than anchor investors) can invest a minimum of Rs 2 lakh. The minimum investment for anchor investor is fixed at Rs 10 crore. Through the earlier six tranches of the CPSE ETF, the government has already raised about Rs 50,000 crore; 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, Rs 17,000 crore in November 2018 and Rs 10,000 crore in March 2019 and Rs 11,500 crore in July 2019.

  RELATED NEWS >>