The government is mulling to issue FPO of the Bharat 22 ETF to raise as much as Rs. 10,000 crore "Plans are on for launching the third tranche of Bharat-22 ETF around February. The offer is likely to have a base issue size of Rs 5,000 crore, with a green-shoe option to retain an over-subscription of equal amount, taking the total issue size to Rs 10,000 crore," the official told PTI.
So far the government has raised a total of Rs. 22,990 crore from the instrument and there shall be now a need to re-balance the ETF as the government holding in some of the CPSEs could fall down below the 53% mark.
The Central Public Sector Enterprises (CPSEs) that are part of the Bharat-22 ETF include ONGC, IOC, SBI, BPCL, Coal India and Nalco. Other constituents include Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL and NLC India. Only three public sector banks -- SBI, Indian Bank and Bank of Baroda - are included in the Bharat-22 index.
Also, the government's strategic holding in Axis Bank, ITC and L&T held via SUUTI (Specified Undertaking of Unit Trust of India) makes up the Bharat 22 ETF basket.