Govt Looks To Amass Rs 10,000 Crore From 7th Tranche Of CPSE ETF

The government is likely to launch CPSE ETF's seventh tranche by the end of January to raise Rs 10,000 crore, according to a PTI report citing sources. The report further said that the issue is likely to open for anchor investors on 30 January and for other institutional and retail investors on the following day.

Central Public Sector Enterprises ETF was set up in 2014 to help the government disinvest in public sector companies. The ETF (exchange traded fund) is an open-ended scheme that replicates the Nifty CPSE Index, which is concentrated towards the energy and oil sector.

It tracks shares of 11 CPSEs- ONGC, NTPC, Coal India, IOC, REC, PFC, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN.

Nippon Life India Asset Management, formerly known as Reliance Nippon Life Asset Management, is managing the CPSE ETF on the government's behalf and has already filed 'scheme information document' for CPSE ETF FFO 6 with SEBI.

PTI's sources said the offer will have a base issue size of Rs 10,000 crore and there will be a green-shoe option.

In the earlier six tranches of the CPSE ETF, the government has already raised Rs 49,500 crore. Rs 3,000 crore was raised from the first tranche in March 2014, Rs 6,000 crore in January 2017, Rs 2,500 crore from the third in March 2017, Rs 17,000 crore in November 2018 and Rs 10,000 crore in March 2019 and Rs 11,500 crore in July 2019.

The ETF proceeds will help the government meet its disinvestment target of Rs 1.05 lakh crore for the current financial year.