The Central Public Sector Enterprises (CPSE) Exchange Traded Fund (ETF) New Fund Offering (NFO) scheme has been oversubscribed by over Rs.1,000 crore.
As per the latest data, the NFO received subscription of above Rs.4,000 crore as of March 21, the last day, as compared the scheme size of Rs.3,000 crore.
According to analysts, this was a success considering the difficult market conditions.
The NFO received subscription of Rs.750 crore from foreign institutional investors and Rs.835 crore from seven anchor investors.
The balance of the Rs.4,000 crore subscription amount was from high net worth individuals and retail investors.
Since, as per the offer document, the NFO size is Rs.3,000 crore and the anchor portion is Rs.835 crore, the balance portion of Rs.2,165 crore will be proportionately distributed among retail, non-institutional and qualified institutional buyers in such a manner so as to ensure that all retail investors definitely get some allotment, according to people familiar with the scheme.
After retail investors getting the allotment, the remaining portion would get proportionately distributed among the non-institutional and qualified institutional buyers, they said.
The scheme would re-open for continuous subscription and redemption on April 4 instead of the earlier announced date of April 11 so as to give interested investors a chance to invest and trade freely, officials said.
The oversubscription amount of Rs.1,000 would be refunded, but the government had ensured that anyone who had applied would get some units.
The scheme has been launched in accordance with the government’s disinvestment programme. The CPSE ETF will invest in a basket of 10 blue-chip public sector undertakings.
“We are delighted with the overwhelming investor response to the CPSE ETF. Being pioneers of ETF in India, we are happy that the concept has resonated with all categories of investors,” said Sanjiv Shah, CEO, Goldman Sachs Asset Management (India) Pvt. Ltd.
worth over Rs.4,000 crore