New Delhi [India], Jan. 21 : The Further Fund Offer (FFO) of the Central Public Sector Enterprises (CPSE) Exchange Trade Fund (ETF) has got an overwhelming response as the issue got over-subscribed by wide margin.
The FFO, which was launched on Janury 17, 2017, got bids of approximately Rs. 12,000 crore (US (Dollar) 1.7 billion) and received applications from over two lakh investors across 300 cities.
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.
Morgan Stanley, Nomura, Kotak Mutual Funds, EPFO, SBI Bank, and the Life Insurance Corporation on India (LIC) among others are the prominent domestic and foreign institutions that participated as anchor investors.
Non-anchor portion was largely subscribed by retail investors and PFS - both domestic and foreign. Retail investors are expected to get first preference and assured allotmentas part of the CPSE ETF FFO norms.
Earlier, commenting on the Department of Investment and Public Asset Management's (DIPAM) plans to divest through an FFO of CPSE ETF, Neeraj Kumar Gupta, Secretary, DIPAM, said he was hopeful of a positive response from all kinds of investors.
DIPAM intended to raise Rs. 6,000 crore from the CPSE ETF fund offer with a basic issue size of Rs. 4,500 crore with a green shoe option of Rs. 1,500 crore. As part of the FFO, an upfront discount of five percent was offered to all category of investors. The FFO was open for all category of investors including anchor investors, retail investors, retirement funds, non-institutional investors and foreign portfolio investors.
The offer remained open till January 20..