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The central public-sector enterprise exchange-traded fund (CPSE ETF) has seen encouraging response from investors with the total subscription for its new fund offer (NFO) touching Rs 2400 crore , a day before its closing.
The Rs 3,000 crore-NFO will need another Rs 600 crore on Friday to attain full subscription. The CPSE ETF had raised Rs 835 crore from seven anchor investors on Tuesday. On the first day of the NFO, the subscription figure had touched Rs 1,800 crore.
CPSE ETF, managed by Goldman Sachs Mutual fund, comprises a basket of 10 state-owned companies’ stocks. This is the first time the government has used the mutual fund route to meet its divestment target. The government is offering a five per cent discount to investors applying during the NFO. The ETF will mimic the returns of the CPSE index created by the NSE.
The CPSE index was down 1.14 per cent to 1,834 on Thursday.
