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The government has garnered more than Rs 17,000 crore from the CPSE ETF follow-on offer, the biggest-ever fund raising from an exchange-traded fund domestically. The follow-on fund offer (FFO) of CPSE ETF, which closed on Friday, got subscription worth Rs 20,000 crore, against the total issue size of Rs 14,000 crore.
The government hit the markets with the fourth tranche of CPSE ETF on November 27. Anchor investors put in bids worth Rs 13,300 crore, which was 5.5 times the shares reserved for them, on the first day of the issue. “About Rs 20,000 crore worth of subscription has come in. We will retain a little over Rs 17,000 crore from the CPSE ETF FFO,” an official told PTI.
The CPSE ETF had a base issue size of Rs 8,000 crore, with a green-shoe option to retain additional subscription of Rs 6,000 crore. The total issue size was Rs 14,000 crore. The official said there was a scope for retaining more over subscription, but that could have meant that government stake in some CPSEs falling to 53 per cent.
“Huge investments have come in from pension funds and domestic institutions like mutual funds, although large investors like LIC and EPFO’s subscription was not significant,” the official added.
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