The second tranche of the Central Public Sector Enterprises’ Exchange-Traded Fund (CPSE-ETF) saw subscription worth Rs 13,726 crore as of 6:30 pm on Monday.
This is over two times of the Rs 6,000 crore issue including the green shoe option. Over 2.65 lakh investors across categories subscribed to the issue. Around 60% of the non-anchor book was filled by retail investors, which makes it one of the largest participation in any public offering in recent years.The issue also received strong participation from foreign institutional investors (FIIs)— with over Rs 3,500 raised from foreign institutions. The HNI and QIB categories may not get allotment due to over subscription by retail and PF category that have got preference in the allotment. Anchor investors and pension funds will get proportionate allotment. The non-anchor portion of the issue which concluded on Friday received bids of Rs 6,000 crore, two times of Rs 3,000 crore reserved in the issue.
The CPSE ETF planned to raise up to Rs 4,500 crore with an option to retain over-subscription of Rs 1,500 crore. On Tuesday, the anchor portion of the ETF received bids worth Rs 6,000 crore, four times more than the units on offer.
The Employees’ Provident Fund Organisation (EPFO) was one of the biggest bidders in the anchor category, it submitted an application worth R800 crore, according to sources.
Morgan Stanley, Nomura, Kotak MF, State Bank of India, and LIC were among the other domestic and foreign institutions that participated in the anchor allotment.
CPSE ETFs includes stocks such as ONGC Ltd, Coal India Ltd, Indian Oil Corp Ltd, Gail (India) Ltd, Power Finance Corp. Ltd, Rural Electrification Corp Ltd, Container Corp of India Ltd, Bharat Electronics Ltd, Oil India Ltd and Engineers India Ltd.
ETF is a marketable security that tracks a basket of assets such as stocks. Unlike mutual funds, it trades like a stock.
The government aims to raise Rs 56,500 crore by selling stakes in state-owned enterprises in the financial year (FY) 2016-17, so far the government has disinvested up to Rs 23,528 crore.