The Ministry of Finance has reshuffled the Central Public Sector Enterprises (CPSE) Exchange Traded Fund (ETF) and has included four state-owned companies NTPC, NLC, NBCC and SJVN, an official said.
The ministry has removed three existing companies GAIL, Engineers India Ltd (EIL) and Container Corporation of India from the ETF lot, replacing them with four new companies.
An official said "NTPC, SJVN, NLC and NBCC have been included in the CPSE ETF, while GAIL, EIL and Container Corporation removed from the basket. CPSE ETF now has scrips of 11 state-owned companies as against ten earlier," reports the Economic Times.
GAIL, EIL and Container Corporation has been removed from the CPSE's index because the government's stake in these companies has decreased below 55 per cent.
Since the scrip value of GAIL, EIL and Container Corp were higher, four new CPSEs were included in the ETF to keep the CPSE ETF index value at the same level, the official explained.
The ministry also plans to start the follow-on public offer of CPSE ETF by the end of this month and is looking up to Rs 8,000 crore as sale profits, added the official.
The other blue-chip PSUs in the CPSE ETF are ONGC, Oil India, Coal India, Bharat Electronics, IOC, REC, and PFC. The function of an ETF's is similar to a mutual fund.
CPSE ETF was launched in 2014, and so far the government has sold holdings in the ten companies in the ETF lot in three tranches, therefore raising Rs 11,500 crore, first tranche of Rs 3,000 crore in March 2014, second of Rs 6,000 crore in January 2017 and third of Rs 2,500 crore in March 2017. The ministry is also planning for a fourth tranche by the end of this month.
(Edited by Vivek Dubey)