The sixth tranche of Central Public Sector Enterprise (CPSE) Exchange Traded Fund (ETF) was subscribed 5 times on Friday, even as the government exercised the greenshoe option to raise Rs 11,500 crore and the institutional and retail investors put in bids worth Rs 40,000 crore.
"CPSE ETF FFO 5 oversubscribed by more than 5 times. Against a Base Issue size of Rs 8,000 crore, a subscription amount of more than Rs 40,000 crore was received till 5 p.m. on Friday. The government exercises the greenshoe option taking the offer size to Rs 11,500 crore," Atanu Chakraborty, Secretary, Department of Investment and Public Asset Management (DIPAM) tweeted.
The base issue size of the FFO was Rs 8,000 crore with an option to retain oversubscription of another Rs 2,000 crore.
Reliance Nippon Life Asset Management (RNAM) Limited managed the 6th tranche of CPSE ETF FFO 5 raising a record amount for the government through disinvestment of PSU stocks. This ETF had many global and domestic investors like (foreign portfolio investors), MFs (mutual funds) and AIFs (alternate investment funds).
The leading Qualified Institutional Buyers (QIBs) who participated, included Societe Generale, Credit Suisse, Morgan Stanley, Goldman Sachs, Merrill Lynch, Citigroup, Copthall, Avendus, ICICI Prudential Mutual Fund and Edelweiss Mutual Fund.
"We are proud to have contributed towards the government's disinvestment programme by launching another successful tranche of CPSE ETF, with record collections in this tranche relative to all our earlier tranches," said Sundeep Sikka, ED and CEO, Reliance Nippon Life Asset Management Limited.
"There was unprecedented participation across various categories of investors," he added.
CPSE ETF, a key tool in the hands of the government, has a concentrated portfolio some of bluechip stocks, mostly from the energy and oil sector, having weightage as high as 20 per cent on the underlying index.
The CPSE ETF tracks shares of 11 central public sector enterprises (CPSEs) -- Oil and Natural Gas Corporation (ONGC), National Thermal Power Corporation (NTPC), Coal India, Indian Oil Corporation (IOC), Rural Electrification Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and Satluj Jal Vidyut Nigam Limited (SJVN).
Since its debut in 2014 and the subsequent four tranches in 2017 and 2018, CPSE ETF has raised Rs 38,500 crore for the government by attracting 8.76 lakh investors.
The latest tranche opened for subscription by institutional investors on Thursday and received bids of over Rs 19,000 crore.
DIPAM targets Rs 1.05 lakh crore from disinvestment this fiscal.
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