Traffic moves along a national highway as road construction takes place. (Photographer: Namas Bhojani/Bloomberg)

India Sells Over 3% Stake In NBCC To Reliance Nippon’s CPSE-ETF

The government has sold 5.72 crore shares, representing 3.18 percent stake, in state-owned NBCC Ltd. to Reliance Nippon Life Asset Management Ltd, which manages the Central Public Sector Enterprise-Exchange Traded Fund.

In a filing to the exchanges, NBCC said the President of India, acting through Housing and Urban Affairs Ministry, has sold these shares in an off-market transaction to Reliance Nippon, which is the asset management company of the CPSE-ETF mutual fund scheme.

The CPSE-ETF mutual fund scheme was launched in March 2014. The proceeds of the scheme were utilised for the purchase of CPSE shares as represented in the constituent companies of the Nifty CPSE Index. The President had sold the shares at a discounted rate to the scheme for the benefit of unit holders of the scheme.

The Department of Investment and Public Asset Management along with Reliance Nippon has formulated a third ‘Further Fund Offer’ of the scheme which has been offered to the public for subscription.

Post sale, the government’s stake has come down to 70.57 percent in NBCC.