The further fund offer (FFO) of Central Public Sector Enterprise (CPSE) ETF has received overwhelming response from investors. In fact, the fund house has received over 2.75 lakh application amounting Rs.13,500 crore during its further fund offer (FFO). Of these, retail would be close to Rs. 2400 crore.
In a mail sent to Cafemutual, the fund house has said, “Anchor Investors had a 30% quota of the issue size (i.e., 30% of 6000 crore, totaling Rs. 1800 crore). For the non-anchor quota, preference for allotment would be given to retail investors, followed by retirement funds. The same has been mentioned in the offer document of the scheme. Hence, retail investors are likely to get full allotment.”
This FFO is part of the Government of India’s overall disinvestment program, announced earlier by the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, using the ETF route.
The CPSE Index constitutes of companies like ONGC, Gail India, Coal India, Rural Electrification Corporation, Indian Oil Corporation, Oil India, Power Finance Corporation, Container Corporation of India, Bharat Electronics and Engineers India. The Government of India holds majority stakes in these companies.
The government is planning to raise Rs. 6,000 crore from this ETF.
