CPSE ETF’s Fifth Tranche Receives Bids Worth Rs 9,500 Crore

The government has received bids worth Rs 9,500 crore so far from the fifth tranche of Central Public Sector Enterprises Exchange Traded Fund, an official said.

Anchor investors had put in bids worth Rs 6,072 crore on the first day of the issue on March 19. The issue closed on Friday.

The remaining amount of subscription worth about Rs 3,500 crore came in from institutional and retail investors.

The subscription for CPSE ETF has touched Rs 9,500 crore so far, the official said, adding that they will exercise green-shoe option and retain over-subscription. Final subscription data would come by the end of the day.

The government had set Rs 3,500 crore as the base issue size for the three-day issuance of the fifth tranche of CPSE ETF. As much as 30 percent of the issue size is reserved for anchor investors.

The list of anchor investors include BNP Paribas Arbitrage, Citi Group Global Markets Mauritius Pvt. Ltd., Credit Suisse Singapore Ltd., Edelweiss Alpha Fund, ICICI Prudential Balanced Advantage Fund, Merrill Lynch Markets Singapore Pte Ltd., and Morgan Stanley (France) S.A., among others.

The ETF tracks shares of 11 CPSEs—Oil & Natural Gas Corporation Ltd., NTPC Ltd., Coal India Ltd., Indian Oil Corporation Ltd., Rural Electrification Corporation Ltd., Power Finance Corporation Ltd., Bharat Electronics Ltd., Oil India Ltd., NBCC India Ltd., NLC India Ltd. and SJVN Ltd.

Through the earlier four tranches of the CPSE ETF, the government has already raised Rs 28,500 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 and Rs 17,000 crore in November 2018.

The government has exceeded the disinvestment target set for current fiscal ending March 2019 by Rs 5,000 crore, taking the proceeds to Rs 85,000 crore.

Updates earlier version to correct the expansion of CPSE.