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With Rs 85,000 crore divestment, Govt beats target by Rs 5,000 cr

With Rs 85,000 crore divestment, Govt beats target by Rs 5,000 cr

New Delhi: The Government Friday said it has exceeded its disinvestment target for the current fiscal by Rs 5,000 crore and the proceeds have touched Rs 85,000 crore. "As against a target of Rs 80,000 crore for disinvestment for the current year, the divestment receipts have touched Rs 85,000 crores today," Finance Minister Arun Jaitley tweeted. The government has mopped up Rs 9,500 crore from the fifth tranche of CPSE ETF and Rs 14,500 crore from the REC-PFC deal. For next fiscal the disinvestment target has been fixed at Rs 90,000 crore. CPSE ETF 5th tranche: Govt gets bids worth Rs 9,500 crore

Meanwhile, the government has received bids worth Rs 9,500 crore so far from the fifth tranche of CPSE Exchange Traded Fund (ETF), an official said Friday. Anchor investors had put in bids worth Rs 6,072 crore on the first day of the issue on March 19. The issue closed Friday.

The remaining amount of subscription worth about Rs 3,500 crore came in from institutional and retail investors. "The subscription for CPSE ETF has touched Rs 9,500 crore so far. We will exercise green-shoe option and retain over-subscription," an official said. Final subscription data would come by the end of the day.

The government had set Rs 3,500 crore as the base issue size for the three-day issuance of the fifth tranche of CPSE ETF. As much as 30 per cent of the issue size is reserved for anchor investors.

The list of anchor investors include BNP Paribas Arbitrage, Citi Group Global Markets Mauritius Pvt Ltd, Credit Suisse Singapore Ltd, Edelweiss Alpha Fund, ICICI Prudential Balanced Advantage Fund, Merrill Lynch Markets Singapore Pte Ltd, and Morgan Stanley (France) S.A., among others. The ETF tracks shares of 11 CPSEs -- ONGC, NTPC, Coal India, IOC, Rural Electrification Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN.

Through the earlier four tranches of the CPSE ETF, the government has already raised Rs 28,500 crore -- Rs 3,000 crore from the first tranche in March 2014, Rs 6,000 crore in January 2017, Rs 2,500 crore from the third in March 2017 and Rs 17,000 crore in November 2018.

State-owned Canara Bank Friday said it has launched a bond issuance programme through its London branch to raise up to USD 400 million (about Rs 2,750 crore).

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