NEW DELHI :
The sixth tranche of CPSE ETF was lapped up by both institutional and retail investors who put in bids worth over ₹40,000 crore, as against the base issue size of ₹8,000 crore.
"CPSE ETF FFO 5 oversubscribed by more than 5 times. Against Base Issue size of ₹8,000 cr, a subscription amount of more than ₹40,000 crores was received till 5.00 pm today," Secretary DIPAM said in a tweet.
The government is looking to raise up to ₹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 ₹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 ₹8,000 crore with an option to retain oversubscription of another ₹2,000 crore.
Through the earlier five tranches of the CPSE ETF, the government has already raised ₹38,500 crore -- ₹3,000 crore from the first tranche in March 2014, ₹6,000 crore in January 2017, ₹2,500 crore from the third in March 2017, ₹17,000 crore in November 2018 and ₹10,000 crore in March 2019.
The government aims to raise record ₹1.05 lakh crore through disinvestment in 2019-20, up from ₹85,000 crore raised last fiscal.