CPSE ETF second tranche garners 2 times subscription

Government to get Rs 6,000 cr as disinvestment proceeds

The second tranche of the Central Public Sector Enterprises’ Exchange-Traded Fund (CPSE-ETF) saw two times more demand than the units on offer, enabling Rs 6,000 crore for the government as disinvestment proceeds.

The further fund offer (FFO) by Reliance Mutual Fund (MF), manager of the ETF, saw strong demand from all category of investors. There were bids for Rs 12,000 crore and a little more than 200,000 applications till closure at 6 pm on Friday. The base issue size is Rs 4,500 crore, with an option to retain additional subscription of Rs 1,500 crore.

CPSE-ETF’s recent outperformance, attractive dividend yield and valuations