Union Finance Ministry will launch additional offering of CPSE-Exchange Traded Fund (ETF) on March 19, 2019 to raise at least Rs. 3,500 crore. This ETF sale through follow-on fund offer will come with option of retaining up to Rs. 5,000 crore via green shoe option.
Previous CPSE-ETF offerings
In November 2019, Government had raisead up Rs 17,000 crore. It was biggest disinvestment transaction through ETF. The proceeds from this ETF sale will help Government to achieve Rs. 80,000-crore disinvestment target set for this fiscal. As on February 2019, Government has realized Rs.56,473.32 crore as disinvestment proceeds.
In security issues, it is over-allotment option. It is provision in underwriting agreement that grants underwriter right to sell investors more shares than originally planned by issuer if demand for security issue proves higher than expected.
Exchange-traded fund (ETF)