Govt to Rise Up To Rs 14,000 Crore through 4th Tranche of CPSE ETF

November 20, 2018

The government will next week launch the fourth tranche of CPSE Exchange Traded Fund to garner up to Rs 14,000 crore, investment banking sources said. The government has already raised Rs 11,500 crore in the earlier three tranches of the ETF, which functions like a mutual fund scheme.

The issue will open early next week and investors would get 3.5-4 per cent discount over the issue price, the sources said.

The government is aiming to mop up Rs 8,000 crore, with a green-shoe option to retain either Rs 4,000 crore or Rs 6,000 crore from the fourth tranche of CPSE ETF, they added

The number of scrips in the CPSE ETF has been increased to 11 state-owned companies, as against 10 earlier, with the entry of four new firms namely NTPC, SJVN, NLC and NBCC.

Three existing companies, GAIL, Engineers India Ltd (EIL) and Container Corporation of India, have been removed from the index as the government holding in these companies has fallen below 55 per cent.

Since the weightage and scrip value of these three companies were higher, four new CPSEs had to be include ..
 

About nehanchal

I am Nehanchal. 3 years ago, I started my career as content writer at Money classic Research. I am fascinated with this job and I feel habit of reading and writing enhances your skills. I love to write technical and health blogs. However, I am engineer turned writer and pursued graduation at Rajiv Gandhi Prodyogiki Vishwavidhyalaya.
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