CPSE ETF follow-on offer oversubscribed 5 times, gets bids worth Rs 40k cr

The sixth tranche of CPSE ETF was lapped up by both institutional and retail investors who put in bids worth over Rs 40,000 crore, as against the base issue size of Rs 8,000 crore.

"CPSE ETF FFO 5 oversubscribed by more than 5 times. Against Base Issue size of Rs 8,000 cr, a subscription amount of more than Rs 40,000 crores was received till 5.00 pm today," Secretary DIPAM said in a tweet.

The government is looking to raise up to Rs 10,000 crore through the follow-on fund offer (FFO) of CPSE Exchange Traded Fund (ETF).

The issue opened for subscription by anchor investors on Thursday which put in bids worth Rs 19,980 crore. Qualified institutional buyers who put in bids include Societe Generale, Credit Suisse, Morgan Stanley, Goldman Sachs, Merrill Lynch, Citigroup, Copthall, Avendus, ICICI Prudential Mutual Fund, Edelweiss Mutual Fund.

The issue opened for retail investors on Friday.

The CPSE ETF tracks shares of 11 central public sector enterprises (CPSEs) -- ONGC, NTPC, Coal India, IOC, Rural Electrification Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN.

The base issue size of the FFO was Rs 8,000 crore with an option to retain oversubscription of another Rs 2,000 crore.

Through the earlier five tranches of the CPSE ETF, the government has already raised Rs 38,500 crore -- Rs 3,000 crore from the first tranche in March 2014, Rs 6,000 crore in January 2017, Rs 2,500 crore from the third in March 2017, Rs 17,000 crore in November 2018 and Rs 10,000 crore in March 2019.

The government aims to raise record Rs 1.05 trillion through disinvestment in 2019-20, up from Rs 85,000 crore raised last fiscal.