During the current financial year, through the ETF mode, Further Fund Offer (FFO) -5 and FFO-6 of CPSE-ETF yielded ₹ 10,000.39 crore and ₹ 16,500 crore in July 2019 and January 2020 respectively. FFO-2 of Bharat-22 ETF fetched ₹ 4,368 crore in October 2019. In aggregate, ETFs have yielded ₹ 30,868.39 crore in 2019-20. This was stated by Shri Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs, in a written reply to a question in Lok Sabha today.

Giving more details, Shri Thakur stated that the policy of disinvestment of minority stake without transfer of management control is being followed through various SEBI-approved methods such as Initial Public Offer (IPO), Offer for Sale (OFS), Buyback of shares and Exchange Traded Funds (ETFs) offers. Disinvestment is an ongoing process. Timing of disinvestment transaction depends on the prevailing market condition and the investors’ interest.

Shri Thakur further said that at present, Bharat 22 ETF consists of equity of 15 CPSEs, 3 PSU banks and 3 private companies. The net shares of Govt. in CPSEs included in the Bharat-22 ETF are given below:

Serial No.	CPSEs	Net share of Govt. of India
1	2Bharat Electronics Ltd	351.13%
2	5Bharat Petroleum Corp Ltd	652.98%
3	8Coal India Ltd	966.14%
4	Engineers India Ltd	51.50%
5	Gail India Ltd	51.76%
6	Indian Oil Corp Ltd	51.50%
7	National Aluminium Co Ltd	51.50%
8	NBCC (India) Ltd	61.75%
9	NHPC Ltd	70.95%
10	NLC India Ltd	79.20%
11	NTPC Ltd	51.02%
12	Oil & Natural Gas Corp Ltd	60.41%
13	Power Finance Corp Ltd	55.99%
14	Power Grid Corp of India Ltd	51.34%
15	SJVN Ltd	59.92%

 

Disinvestment policy of minority CPSE stakes via SEBI approved methods yields proceeds while retaining management control. Disinvestment of CPSEs is pursued by selling minority stakes without transfer of management control using SEBI approved routes such as IPOs, Offers for Sale, buybacks and ETFs; timing depends on market conditions and investor interest. The Bharat 22 ETF comprises equity from fifteen CPSEs, three PSU banks and three private companies, with the government's net shareholdings in each listed to show retained economic interest while effecting minority stake divestments.