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CPSE exchange-traded fund 2.0 may include Suuti firms

Market players say this will make the ETF more attractive as the exposure would get diversified

BS Reporter 

CPSE exchange-traded fund 2.0 may include Suuti firms

The proposed new Central Public Sector Enterprises (ETF) might comprise private companies where the holds the stake through Specified Undertaking of the Unit Trust of India (Suuti), along with other public sector units. There was speculation that the new might include banks and companies such as Larsen & Toubro, ITC and Axis Bank in which Suuti holds stake the has all but confirmed the development.

“The proposed new will serve as an additional mechanism for the to monetise its shareholdings in CPSEs and in other corporate entities,” the centre has said in the request for proposal (RFP) for legal advisors. 

holds sizable stake in L&T, ITC and Axis Bank through Suuti and is looking to divest the same in the next three years. Market players say inclusion of Suuti companies will make the more attractive as the exposure would get diversified. Last year, the centre had sold some stake in ITC and L&T to garner around Rs 8,700 crore. 

ICICI Prudential AMC has been given the mandate to manage the This will be the second EFT product to be launched by the The centre had launched its first in FY14 to raise Rs 3,000 crore. The had launched second and third tranche of this last fiscal to raise Rs 8,500 crore. 

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