(LiveMint)
The Finance Ministry is likely to replace GAIL, Engineers India Ltd (EIL) and Container Corporation with new PSUs in the CPSE Exchange Traded Fund (ETF) since the government holding in these companies has fallen below 55%. CPSE ETF, which functions like a mutual fund scheme, comprises scrips of 10 bluechip PSUs namely ONGC, Coal India, IOC, Oil India, PFC, Bharat Electronics, REC, GAIL, EIL and Container Corporation of India.
Officials said three or more PSUs would be included in the CPSE ETF basket to replace GAIL, EIL and Container Corp and the number would depend upon the value of the scrip and the corresponding weightage in the ETF basket. GAIL India, Container Corp and EIL have weightage of 11.25%, 5.08% and 2.28%, respectively in CPSE ETF. CPSE ETF was set up in 2014 and the government has so far sold stake in the 10 companies in the basket in three tranches, thereby raising ₹11,500 crore. Currently, the government holds 53.34%, 54.80% and 52.02% stakes in GAIL, Container Corp and EIL, respectively.
