LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

CPSE ETF may include shares of 11 firms, rebalanced index to be ready by October

The new index of the CPSE Exchange  Trade  Fund (ETF) is likely to have shares of 11 state-owned companies, in place of 10 at present, an official said.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
CPSE ETF may include shares of 11 firms, rebalanced index to be ready by October
Shares of three CPSEs -- GAIL, Engineers India Ltd (EIL) and Container Corporation -- will be removed from the index since the government holding in these companies has fallen below 55 per cent. Image source: Reuters
Written By: PTI
Updated: Sun, Sep 30, 2018
12:58 pm
PTI
RELATED NEWS
GAIL share price: ICICI Securities maintains buy rating with target price of Rs 164 GAIL share price: ICICI Securities maintains buy rating with target price of Rs 164
Stocks to Buy with Anil Singhvi: GAIL is Special Pick today for experts Kunal Saraogi, Rakesh Bansal Stocks to Buy with Anil Singhvi: GAIL is Special Pick today for experts Kunal Saraogi, Rakesh Bansal
Gas Authority of India (GAIL) share price today: Sharekhan maintains Buy rating with revised price target of Rs 155. Gas Authority of India (GAIL) share price today: Sharekhan maintains Buy rating with revised price target of Rs 155.
PM Narendra Modi dedicates slew of infra projects to nation in West Bengal's Haldia PM Narendra Modi dedicates slew of infra projects to nation in West Bengal's Haldia
On IGL, MGL and GAIL shares, UBS is quite bullish; Anil Singhvi decodes On IGL, MGL and GAIL shares, UBS is quite bullish; Anil Singhvi decodes

The new index of the CPSE Exchange Trade Fund (ETF) is likely to have shares of 11 state-owned companies, in place of 10 at present, an official said. The Finance Ministry, along with investment bankers, is currently in the process of rebalancing the ETF and the new index is likely to be ready by end-October, the official added. Shares of three CPSEs -- GAIL, Engineers India Ltd (EIL) and Container Corporation -- will be removed from the index since the government holding in these companies has fallen below 55 per cent.

These stocks would be replaced by scrips of four new CPSEs, including KIOCL, which will take their total number in the ETF to 11, the official told PTI. The government currently owns 99 per cent stake in KIOCL (formerly Kudremukh Iron Ore Company Ltd). The CPSE ETF, which functions like a mutual fund scheme, comprises scrips of 10 bluechip PSUs -- ONGC, Coal India, IOC, Oil India, PFC, Bharat Electronics, REC, GAIL, EIL and Container Corporation of India.

GAIL India, Container Corp and EIL have weightage of 11.25 per cent, 5.08 per cent and 2.28 per cent, respectively in CPSE ETF. Since the weightage and scrip value of GAIL, Container Corp and EIL are higher, four new CPSEs have to be included to replace them to keep the CPSE ETF index value at the same level. "The new index should be ready by end October after which the government will launch the fourth tranche of follow on offer of the ETF," the official added.

CPSE ETF was set up in 2014 and the government has so far sold stake in the 10 companies in the basket in three tranches, thereby raising Rs 11,500 crore. Currently, the government holds 53.34 per cent, 54.80 per cent and 52.02 per cent stakes in GAIL, Container Corp and EIL, respectively. When CPSE ETF was set up, a limit was fixed such that the stake sales could take place till the government holding in the 10 constituent companies reached 55 per cent.

Since the government holding in these three CPSEs have fallen below 55 per cent, new scrips have to be included to replace them. ICICI Securities has been appointed as adviser for the fourth tranche of the ETF. Through the three tranches of CPSE ETF, the government has already raised Rs 11,500 crore -- Rs 3,000 crore from the first tranche in March 2014; Rs 6,000 crore in January 2017 and Rs 2,500 crore from the third in March 2017.

The government has budgeted to raise Rs 80,000 crore through disinvestment in the current fiscal. It has mopped up over Rs 9,000 crore so far.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
GAILEngineers India
RELATED NEWS
GAIL share price: ICICI Securities maintains buy rating with target price of Rs 164 GAIL share price: ICICI Securities maintains buy rating with target price of Rs 164
Stocks to Buy with Anil Singhvi: GAIL is Special Pick today for experts Kunal Saraogi, Rakesh Bansal Stocks to Buy with Anil Singhvi: GAIL is Special Pick today for experts Kunal Saraogi, Rakesh Bansal
Gas Authority of India (GAIL) share price today: Sharekhan maintains Buy rating with revised price target of Rs 155. Gas Authority of India (GAIL) share price today: Sharekhan maintains Buy rating with revised price target of Rs 155.
PM Narendra Modi dedicates slew of infra projects to nation in West Bengal's Haldia PM Narendra Modi dedicates slew of infra projects to nation in West Bengal's Haldia
On IGL, MGL and GAIL shares, UBS is quite bullish; Anil Singhvi decodes On IGL, MGL and GAIL shares, UBS is quite bullish; Anil Singhvi decodes

LATEST NEWS

Happy International Women's Day: Check best WhatsApp wishes, quotes, messages fo your loved ones

Shilpa Shetty signs as fitness ambassador of nutrition brand

Announced LIVE: JEE Main Result DECLARED - Here is how to check

IRCTC, Ashok Leyland share price: Technical Analysis explained by Bonanza Portfolio

7th Pay Commission: After family pension, Modi government BIG relief on DA for central government employees likely soon, pensioners to benefit too

MacKenzie Scott Marriage: Ex-wife of Amazon boss Jeff Bezos marries this man - Who is he? His profession? Read full letter

OnePlus 9 series global launch on March 23; Packs Hasselblad cameras and more | Check all details here

Meghan on racism in UK royal family, considering suicide and crying due to Kate

Petrol-diesel rates, LPG cylinder price hike! Rs 21 lakh crore collected from excise duty, cess, Mallikarjun Kharge reveals

Alert! WhatsApp may stop working on these smartphones | Is your phone on list? Check details NOW

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved