Reliance CPSE ETF anchor portion oversubscribed 5.57 times

Reliance CPSE ETF has turned out to be a big draw with investors as its anchor portion stood oversubscribed by 5.57 times.

In absolute terms, Rs 13,300 crore of subscription was received as against the anchor book size of Rs 2,400 crore, the company said. FIIs accounted for 65 per cent of the overall demand.

CPSE ETF (Central Public Sector Enterprises – Exchange Traded Fund), which works similar to a mutual fund scheme, is an instrument the government uses to divest its stake in CPSEs without hitting the secondary market.

The offering saw some big names as its anchor investors, namely Societe Generale, Bank of America Merrill Lynch, Morgan Stanley, Nomura, ICICI Prudential Mutual Fund, LIC and SBI Mutual Fund.

In a separate development, the government is considering exercising greenshoe option worth of Rs 4,000-6,000 crore in CPSE ETF FF03 over the base issue size of Rs 8,000 crore.

"The base issue size in the fourth round of CPSE ETF issue is Rs 8,000 crore and this time a greenshoe option has been kept which may be between Rs 4,000 crore and Rs 6,000 crore. However, the government is yet to decide on this," PTI quoted Reliance Nippon Life AMC Co-Chief Business Officer Saugata Chatterjee as saying.

Out of the Rs 80,000 crore target from divestment in 2018-19, the Centre has been able to achieve only Rs 15,247 crore, available data showed.

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