The government plans to hit the market with the second tranche of Bharat-22 ETF by next week after the blockbuster performance in the first tranche, government sources told CNBC-TV18.

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The government aims to raise Rs 6,000 crore via the second tranche of Bharat-22 Exchange Traded Fund (ETF), the sources said.

It had raised Rs 14,500 crore through the first tranche, which comprises 22 companies, in November last year.

The second tranche of the ETF offers a discount of 2.5 percent to all investors.

Bharat 22 ETF is one of the vehicle used by the government to achieve a divestment target of Rs 80,000 crore. It is an open-ended ETF which will invest in similar composition and weightages as they appear in Bharat 22 Index.

The index is a unique blend of shares of key central public sector enterprises, public sector banks as also government shares in blue chip private companies such as Larsen & Toubro, Axis Bank and ITC.

The shares of the government companies represent six core sectors of the economy - finance, industry, energy, utilities, fast moving consumer goods and basic materials, making the index broad-based and diversified.

State-owned companies that are part of the new Bharat ETF 22 include Oil and Natural Gas Corp, Indian Oil Corp, State Bank of India, Bharat Petroleum Corp, Coal India and Nalco.

First Published:Jun 13, 2018 11:01 AM IST