Government's CPSE ETF receives bids of approximately Rs 12,000 crore

The further fund offer (FFO) of CPSE has received bids of approximately Rs 12,000 crore over two and half times the base issue size of Rs 4,500 crore. 

The FFO is part of larger disinvestment program started by the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance, on January 17 and it lasted till January 20. 

“The Central Public Sector Enterprises (CPSE) Exchange Trade Fund (ETF) FFO received applications from over two lakh investors across 300 cities across India. This was the largest disinvestment program undertaken by the Government of India using ETF and largest fund offering by any Mutual Fund in India till date,” cited the Government of India in a press release. 

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The investors across all categories offered 5% upfront discount, it said. 

Anchor investors submitted bids of Rs 6,000 crore.

The release further said, “Morgan Stanley, Nomura, Kotak MF, EPFO, SBI Bank, LIC were amongst prominent domestic and foreign institutions that participated as anchor investors.”

Non-anchor portion received bids of Rs 6,000 crore -- two times of Rs 3,000 crore (base) reserved in the issue. It was largely subscribed by retail investors and PFS – both domestic and foreign.

The Central Public Sector Enterprises (CPSE) ETF FFO has plans to raise up to Rs 4,500 crore.