CPSE ETF anchor subscription oversubscribed

New Delhi, March 19 : The fifth tranche of CPSE ETF managed by the Reliance Mutual Fund anchor book was oversubscribed by 5.78 times against anchor base issue size of 1,050 crore.

The Reliance Mutual Fund received 6,072 crore applications, sources said.

"The CPSE ETF is trading at very attractive valuations.

As of February 28, the dividend yield of the Index was as high as 5.52 per cent compared to 1.25 per cent for the Nifty 50.

The PE ratio was 8.43 compared to 26.32 on the Nif ty. In addition, the Government is also giving a 4 per cent discount to investors" , said Vishal Jain, Head ETF, Reliance Mutual Fund.

The anchor investors include Aurigin Master Fund Ltd, BNP Paribas Arbitrage, Citigroup Global Markets Mauritius, Credit Suisse Singapore, Edelweiss Alpha Fund, among others.

Jain said CPSE ETF gives another opportunity to invest in 11 'ratnas' of the government.

The fresh CPSE Exchange Traded Fund offer will be open from March 19-22. This would be the second CPSE (Central Public Sector Enterprises) ETF FFO in the current fiscal after a record Rs 17,000 crore raised in November 2018.

So far, the government has raised a total of Rs 28,500 crore from rounds through CPSE ETF, including the first offer in March 2014 that mopped up Rs 3,000 crore.

The ETF tracks shares of 11 Central Public Sector Enterprises (CPSEs) -- ONGC, NTPC, Coal India, IOC, Rural Electrication Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and SJVNL.

The government has raised Rs 56,473.32 crore through disinvestment till February 28, as against the target of Rs 80,000 crore for the 2018-19 fiscal.



Source: IANS