Govt to launch 6th tranche of CPSE ETF on July 18, eyes up to Rs 10K cr

New Delhi: The government is planning to raise up to Rs 10,000 crore from the sixth tranche of CPSE ETF which would be launched on July 18, an official said.

The CPSE Exchange Traded Fund (ETF) tracks shares of 11 Central Public Sector Enterprises (CPSEs) -- ONGC, NTPC, Coal India, IOC, Rural Electrification Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN.

"The follow-on fund offer (FFO) 5 will have a base issue size of Rs 8,000 crore with an option to retain over subscription of another Rs 2,000 crore," the official said.

The issue is likely to open on July 18 for anchor investors and on July 19 for other investors, the official added. Through the earlier five tranches of the CPSE ETF, the government has already raised Rs 38,500 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, Rs 17,000 crore in November 2018 and Rs 10,000 crore in March 2019.