New Delhi : The Empowered Group of Minister, headed by Finance Minister P Chidambaram decided to form an Exchange Traded Fund (ETF) comprising scrips of 11 bluechip state-owned firms, that will be offered in the market with a view to garnering Rs 3,000 crore this fiscal.
“This EGoM was to finalise the basket for PSU ETF. This basket will comprise of 11 companies, all bluechip PSUs. We expect to raise around Rs 3,000 crore,” Disinvestment Secretary Ravi Mathur said. The firms which would form part of the basket are ONGC, Coal India, GAIL, Power Grid, REC, Oil India, Container Corporation, Power Finance, Indian Oil, Engineers India and Bharat Engineering.
The Department of Disinvestment (DoD) will now file the necessary documents with market regulator Sebi and the ETF would be launched within a month, Mathur said.
The CPSE ETF would help the government to add to the disinvestment kitty. The government targeted to raise Rs 40,000 crore from disinvestment this fiscal but has so far raised only Rs 3,000 crore through PSU stake sale. Last year the Cabinet had approved the setting up of a CPSE ETF.
The PSU ETF would comprise shares of various profitable state-owned companies. ONGC would have the highest weightage of 25% with 89 shares in the proposed ETF basket. Coal India would have a weightage of 17.21% with 61 shares, sources said. ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.