Coal India (CIL) has sold shares worth over R550 crore towards the CPSE’s exchange-traded fund as part of the government’s disinvestment programme. The PSU has sold 2.2 crore shares amounting to R550.6 crore, Coal India (CIL) said in a filing to the BSE.
The ETF gives investors an opportunity to diversify their portfolio through cost-effective investment in blue-chip public sector companies across sectors at a 5% discount.
The CPSE ETF basket comprises shares of 10 companies — Oil & Natural Gas, GAIL, Coal India, Rural Electrification, Oil India, Indian Oil, Power Finance, Container Corporation of India, Bharat Electronics and Engineers India.
An ETF basically tracks a particular index and its returns are based on the performance of that index. ETFs have grown significantly in the past few years in India and their assets under management have gone up from R 1,396 crore in March 2009 to R11,807 crore in September 2013.