Govt expects to raise Rs 8000 cr from 4th tranche of Bharat22

first_imgNew Delhi: The government will launch fourth tranche of Bharat-22 ETF on October 3, which will help garner up to Rs 8,000 crore from investors, sources said. They added that the issue will open for anchor investors on October 3 and for other institutional and retail investors, the next day. The investors would get a 3 per cent discount over the issue price. “The offer is likely to have a base issue size of Rs 2,000 crore, with a green-shoe option to retain another Rs 6,000 crore, taking the total amount to Rs 8,000 crore,” a source privy to the development said. Also Read – Commercial vehicle sales to remain subdued in current fiscal: IcraThe decision has been taken after receiving robust response for earlier stake sale by the government in the product. The government has so far raised around Rs 35,900 crore through the Bharat-22 Exchange Traded Fund — Rs 14,500 crore was garnered in November 2017, another Rs 8,400 crore was mopped up in June 2018 and Rs 13,000 crore in February this year. Proceeds from the ETF will help the government meet its disinvestment target of Rs 1.05 lakh crore for the current financial year. Also Read – Ashok Leyland stock tanks over 5 pc as co plans to suspend production for up to 15 daysThe Central Public Sector Enterprises that are part of the Bharat-22 ETF include ONGC, IOC, SBI, BPCL, Coal India and Nalco. Other constituents are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL, NLC India, Axis Bank, ITC and L&T. Only three public sector banks — SBI, Indian Bank and Bank of Baroda — figure in the Bharat-22 index. Earlier this month, ICICI Prudential Mutual Fund, which manages the ETF, had filed the draft papers regarding the issue with capital markets regulator Sebi.last_img read more