It had bid to manage Suuti's corpus for 13 basis points (0.13 per cent of the total assets under management). The government had bids from seven asset management companies to act as manager to the ETF. These were Reliance Mutual Fund, Birla Sun Life MF, Kotak MF, SBI MF, ICICI Prudential AMC, UTI MF and Sundaram MF in a consortium with Edelweiss MF.

Sources indicate that other bids ranged from 19 basis points to 45 basis points. One hundred basis points is equal to one percentage point. The government is expected to raise up to Rs 7,000 crore through the Suuti ETF. In 2013-14, the Centre had raised Rs 3,000 crore through the central public sector enterprise (CPSE) ETF, managed by Goldman Sachs AMC.

ICICI Securities, which was advisor for the CPSE ETF, is also the advisor for the Suuti ETF. ICICI Prudential MF wasn’t allowed to bid at that time as its sister concern was appointed the advisor. However, the government allowed the AMC to bid for Suuti ETF.

The Request For Proposal floated by the government last month stated Suuti ETF would have seven public sector stocks as underlying assets, besides those of Axis Bank, ITC and Larsen & Toubro — the three companies in which Suuti holds sizable stake. The government-owned Suuti owns 11.27 per cent stake in ITC, 8.18 per cent in L&T and 11.66 per cent in Axis Bank.