NEW DELHI,NOV 05:
The Finance Ministry is eyeing about Rs 8,000 crore through the launch of follow-on public offer of CPSE exchange-traded fund (ETF) by the end of this month, an official said.
This would be the fourth tranche of the CPSE ETF, which comprises shares of 10 bluechip companies. In the earlier three tranches of the ETF, the government had raised Rs 11,500 crore.
The ministry is in the process of rejigging the companies in the ETF and will include four new CPSEs after removing three of the existing companies — GAIL, Engineers India Ltd (EIL) and Container Corporation of India.
“We are planning the fourth tranche of the CPSE ETF by November end. The issue will have a green-shoe option for retaining over-subscription. The target is to raise around Rs 8,000 crore,” an official told .The ministry, acting through the fund manager of the CPSE ETF, is likely to start rebalancing the CPSE ETF by including new scrips soon, the official added. Shares of three CPSEs — GAIL, Engineers India Ltd (EIL) and Container Corporation — will be removed from the index since the government holding in these companies has fallen below 55 per cent.
