Power Grid out of PSU ETF; FinMin files offer document

Power Grid Corporation has been kept out of the proposed CPSE Exchange Traded Fund (ETF), which will now consist of 10 companies, including ONGC, Coal India, GAIL and Indian Oil.

The Finance Ministry has filed the offer document with market regulator SEBI for the Central Public Sector Enterprises ETF, which could fetch the exchequer about Rs 3,000 crore.

“The offer document for CPSE ETF has been filed last week. It will now consist of 10 scrips, instead of 11, as Power Grid has been kept out of it,” a finance ministry official said.

The ETF is expected to hit the markets next month, the official added. Other companies in the ETF basket are REC, Oil India, Container Corporation, Power Finance, Engineers India and Bharat Electronics Ltd.

The official said Power Grid wasexcluded because the scrip has a one-year lock-in period since its follow-on public offer in December.

He added that although a share sale in Engineers India took place in February, it would still be included as the offer was made after the Empowered Group of Ministers had approved the CPSE ETF.