CPSE ETF follow-on fund offer oversubscribed, investors put in bids worth Rs 25,000 cr so far

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Updated: July 19, 2019 10:05:24 PM

The retail investors put in bids worth over Rs 5,000 crore Friday, taking the total bid value to about Rs 25,000 crore, sources said.

CPSE ETF,  CPSE Exchange Traded Fund, CPSE ETF tracks shares, Rural Electrification Corp, ONGC, Power Finance CorpThe government is looking to raise up to Rs 10,000 crore through the follow-on fund offer (FFO) of CPSE Exchange Traded Fund (ETF).

The sixth tranche of CPSE ETF has been subscribed over two times, with institutional and retail investors together putting in bids worth about Rs 25,000 crore so far. The government is looking to raise up to Rs 10,000 crore through the follow-on fund offer (FFO) of CPSE Exchange Traded Fund (ETF). The issue opened for subscription by institutional investors on Thursday and received bids for over Rs 19,000 crore.

The retail investors put in bids worth over Rs 5,000 crore Friday, taking the total bid value to about Rs 25,000 crore, sources said. The number could go up further as the bids are reconciled. The CPSE ETF tracks shares of 11 central public sector enterprises (CPSEs) — ONGC, NTPC, Coal India, IOC, Rural Electrification Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN.

Also read: CPSE ETF sixth tranche opens for retail investors; should you invest?

The base issue size of the FFO was Rs 8,000 crore with an option to retain oversubscription of another Rs 2,000 crore. Through the earlier five tranches of the CPSE ETF, the government has already raised Rs 38,500 crore — Rs 3,000 crore from the first tranche in March 2014, Rs 6,000 crore in January 2017, Rs 2,500 crore from the third in March 2017, Rs 17,000 crore in November 2018 and Rs 10,000 crore in March 2019. The government aims to raise record Rs 1.05 lakh crore through disinvestment in 2019-20, up from Rs 85,000 crore raised last fiscal.

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