Wednesday, October 5News That Matters
Shadow

Tag: CPSE

CPSE EFT FPO kicks off: Should you subscribe?

CPSE EFT FPO kicks off: Should you subscribe?

Finance
NEW DELHI: The fifth tranche of Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF), managed by Reliance Mutual Fund, kicked off for non-anchor investors on Wednesday. Analysts said high dividend yield, low P/E ratio and discount are key attractions, but believe the issue is not suitable for first-time investors. The issue received an overwhelming response from 16 anchor investors, who bade for Rs 6,072 crore worth of ETFs, 5.78 times the base size. The government intends to raise at least Rs 3,500 crore. A discount of 4 per cent will be offered to investors on the reference market price of the underlying Nifty CPSE Index shares. Here are key things you must know about the issue: Sectoral & stock concentrationRisks associated with sectoral concentration are high. Oil a...
Govt raises Rs 17,000 crore from CPSE ETF of Reliance MF

Govt raises Rs 17,000 crore from CPSE ETF of Reliance MF

Finance
MUMBAI: The third further fund offer (FFO) of the CPSE ETF by Reliance Mutual Fund was subscribed 3.5 times getting subscriptions worth Rs 27,300 crore till 5 pm on Friday. This makes it the largest ever FFO by the government through the ETF route. The fund house has received 1.25 lakh application so far. The government will retain Rs 17,000 crore through this issue. “The Rs 17,000 crore raised from disinvestment is also the largest ever equity fund offering through ETF in India. We have seen good participation from FIIs, retirement and pension funds and domestic institutions.” says Sundeep Sikka, chief executive officer, Reliance MF. The ETF offered a 4.5% to all categories of investors. The number of stocks in the CPSE index has increased to 11 from 10 with the entry of...
Finance Ministry may replace GAIL, EIL, Container Corp with new PSUs in CPSE ETF

Finance Ministry may replace GAIL, EIL, Container Corp with new PSUs in CPSE ETF

Finance
The Finance Ministry is likely to replace GAIL, Engineers India Ltd (EIL) and Container Corporation with new PSUs in the CPSE Exchange Traded Fund (ETF) since the government holding in these companies has fallen below 55 per cent. CPSE ETF, which functions like a mutual fund scheme, comprises scrips of 10 bluechip PSUs namely ONGC, Coal India, IOC, Oil India, PFC, Bharat Electronics, REC, GAIL, EIL and Container Corporation of India. Officials said three PSUs or more would be included in the CPSE ETF basket to replace GAIL, EIL and Container Corp and the number would depend upon the value of the scrip and the corresponding weightage in the ETF basket. GAIL India, Container Corp and EIL have weightage of 11.25 per cent, 5.08 per cent and 2.28 per cent, respectively in CPSE ETF. CPSE ETF ...