Divestment strategy: Govt to avoid ETF, OFS to protect stock value

ETFs have been a favoured strategy for the government, with around 80 per cent of last fiscal year's sale proceeds coming from such transactions.

The government will focus on cutting its stake in 21 listed firms and also list its companies, but will wait for an appropriate time for stock prices to improve.

However, it does not plan to come up with more exchange-traded funds (ETF) or offers for sale anytime soon for the same stocks as part of their divestment strategy, because a market study has shown that ETFs reduce values of stocks and bring down the worth of initial public offerings (IPOs).

“We will not do further tranches of two equity repeated offerings. That has been claimed to be as one of the reasons