INSUBCONTINENT EXCLUSIVE:
weight of its components at the current level, sources said.
The government offers part of its shares in 19 state-run and three non-state
companies through the ETF under its disinvestment programme
The follow-on offer of Rs 3,500 crore was subscribed more than 14 times, with the issuer getting 1.25 lakh applications worth Rs 50,000
It has decided to keep Rs 13,000 crore of this, or Rs 9,500 crore more than the initial target.
Based on the composition of the fund, this
Also, it has decided against reducing stake in ITC, one of the three non-state companies
That means, the fund manager will have to purchase shares of these four companies from the market to maintain the weight of the ETF
of SP BSE Bharat 22 Index (the underlying index) through this additional offering to the extent the shareholding of the GoI
post-disinvestment is maintained at or above 52 per cent of the paid-up share capital of those CPSEs and PSBs, and/or subject to any other
price to maintain the weight, the discount offered to investors on the ETF units will come down to 3.9 per cent from the 5 per cent offered
earlier.
As per sources, this purchase will cost Rs 2,500-3,000 crore and will be done over three sessions starting Monday
chief investment officer at Franklin Templeton Investments India
