Markets

Government will retain Rs 17,000 crore in third FFO of CPSE ETF by Reliance MF

MUMBAI: The third further fund offer (FFO) of the CPSE ETF by Reliance Mutual Fund was subscribed 3.5 times getting subscriptions worth Rs 27,300 crore as at 5 pm. This makes it the largest ever FFO by the government through the ETF route. The government will retain Rs 17,000 crore through this issue. The fund house has received 1.25 lakh application received till 5 pm.

"The Rs 17,000 crore raised from disinvestment is also the largest ever equity fund offering through ETF in India. We have seen good participation from FIIs, retirement and pension funds and domestic institutions." says Sundeep Sikka, Chief Executive Officer, Reliance Mutual Fund.

The ETF offered a 4.5% to all categories of investors. The number of stocks in the CPSE index has increased to 11 from 10 stocks with the entry of four new companies – NTPC, NLC, SJVN and NBCC from the power and construction sector, while three companies GAIL, Container Corporation and Engineers India exited the index.

The asset management company first raised Rs 3000 crore through the NFO in March 2014, followed by Rs 6,000 crore in January 2017 and Rs 2500 crore in March 2017.

Original Article