Government To Launch Sixth CPSE ETF On July 18 To Raise Rs 10,000 Crore

The government is planning to raise up to Rs 10,000 crore from the sixth tranche of CPSE ETF which will be launched on July 18, an official said Wednesday.

The CPSE Exchange Traded Fund tracks shares of 11 Central Public Sector Enterprises, including Oil and Natural Gas Corporation Ltd., NTPC Ltd., Coal India Ltd., Indian Oil Corporation Ltd., Rural Electrification Corporation Ltd., Power Finance Corporation Ltd., Bharat Electronics Ltd., Oil India Ltd., NBCC (India) Ltd., NLC India Ltd. and SJVN Ltd.

The CPSE ETF will have a base issue size of Rs 8,000 crore with an option to retain over subscription of another Rs 2,000 crore," the official said. The issue date is July 18 for anchor investors and July 19 for other investors, the official added.

The government has garnered Rs 38,000 crore from the previous five tranches of the CPSE ETF. It aims to raise a record Rs 1.05 lakh crore through disinvestment in 2019-20, up from Rs 85,000 crore raised last fiscal, Finance Minister Nirmala Sitharaman said in her budget speech on July 5.