CPSE ETF Follow-On Offer Oversubscribed 5 Times
Indian two thousand rupee banknotes (Photographer: Dhiraj Singh/Bloomberg)

CPSE ETF Follow-On Offer Oversubscribed 5 Times

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The sixth tranche of Central Public Sector Enterprises’ Exchange Traded Fund was lapped up by both institutional and retail investors who put in bids worth over Rs 40,000 crore, as against the base issue size of Rs 8,000 crore.

"CPSE ETF Follow-On Fund Offer 5 oversubscribed by more than 5 times. Against base issue size of Rs 8,000 crore, a subscription amount of more than Rs 40,000 crore was received till 5.00 pm today," Department of Investment and Public Asset Management Secretary said in a tweet.

The government is looking to raise up to Rs 10,000 crore through the follow-on fund offer of CPSE Exchange Traded Fund.

The issue opened for subscription by anchor investors on Thursday which put in bids worth Rs 19,980 crore. Qualified institutional buyers who put in bids include Societe Generale, Credit Suisse, Morgan Stanley, Goldman Sachs, Merrill Lynch, Citigroup, Copthall, Avendus, ICICI Prudential Mutual Fund, Edelweiss Mutual Fund.

The issue opened for retail investors on Friday.

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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