The further fund offer (FFO) of Central Public Sector Enterprise (CPSE) ETF has received an overwhelming response from investors. The fund house has received over 1.25 lakh application worth Rs.27,300 crore, 3.5 times against the original issue size of Rs.8,000 crore.
Earlier, the government aimed to raise Rs.14,000 crore from this ETF. In fact, the fund house has proposed to raise upto Rs. 8,000 crore in this FFO with an option to retain oversubscription upto Rs. 6000 crore. However, with overwhelming response to Reliance Nippon Life CPSE ETF, the government has decided to raise Rs.17,000 crore, said Sundeep Sikka, ED & CEO, Reliance Nippon MF.
Sundeep further said that the CPSE ETF saw robust participation from FIIs, retirement and pension funds and domestic institutions too. The anchor book was oversubscribed 5.57 times receiving subscriptions to the tune of Rs.13,300 crore as against Rs.2400 crore.
The Department of Investment and Public Asset Management (DIPAM), Ministry of Finance has announced the discount of 4.5% for retail investors in this FFO. With this issue, the government has divested its stake in 11 PSUs through the Central Public Sector Enterprise (CPSE) ETF.
With the inclusion of four companies from power sector and exclusion of three companies such as Gail India, Container Corporation of India and Engineers India, the index now constitutes of 11 companies - ONGC, Coal India, Rural Electrification Corporation, Indian Oil Corporation, Oil India, Power Finance Corporation, Bharat Electronics, NTPC, NBCC India, NLC and SJVN.
