Millennium Post

Bharat-22 ETF follow-on offer could be worth Rs 10,000 crore

New Delhi: The Finance Ministry may come out with a Rs 10,000-crore follow-on fund offer of the Bharat-22 exchange traded fund (ETF) as it looks to dilute stake in Coal India to meet the minimum public holding norm.
Besides, the ministry is keen to take the ETF route to sell off government shares held through SUUTI in private companies — ITC, Axis Bank and L&T, an official said. The government had in November last year launched Bharat-22 ETF comprising shares of 22 companies, including public sector undertakings (PSUs), public sector banks, ITC, Axis Bank and L&T. The fund had garnered bids to the tune of Rs 32,000 crore, although the government retained only Rs 14,500 crore.
An official said the ETF route is a safer mode of disinvestment as it shields investors against stock market volatility.
"Based on the current composition of ETF, the leg room for a follow-on fund offer would be around Rs 10,000 crore," the official added.
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