Govt may come up with more ETFs after sound response to CPSE

The new fund offer has mopped up bids worth around Rs 4,400 crore against the govt target of raising Rs 3,000 crore from the CPSE ETF

After the encouraging response to CPSE ETF, government is mulling coming up with more such exchange traded funds comprising shares of public sector units as part of its divestment programme.

"May be in coming times, we will introduce more of such ETF products because the main idea behind launching the CPSE ETF was to do the disinvestment programme in a manner in which markets are not disrupted.

"So once having achieved that (purpose), this process can be taken forward," Joint Secretary of Department of Disinvestment Alok Tandon told reporters on the sidelines of listing of CPSE ETF on National Stock Exchange (NSE) here.

CPSE ETF, which comprises stocks of 10 public sector enterprises like ONGC, Gail (India), Coal India, REC, Oil India, Indian Oil, Power Finance Corporation, Container Corporation of India, Bharat Electronics and Engineers India, has witnessed encouraging response from investors.

The new fund offer, which was closed on March 24, has mopped up bids worth around Rs 4,400 crore against the government target of raising Rs 3,000 crore from the CPSE ETF.

As per Goldman Sachs India MF, which has launched this product and is managing it, around 40,000 investors have invested in this ETF out of which many are retail and new investors.

Many market participants are of the view that CPSE ETF is likely to attract more funds after its reopening.