Posted on Friday, January 20, 2017
Reliance Mutual Fund CPSE ETF gets an overwhelming response as the issue gets oversubscribed by wide margin.
Reliance Mutual Fund CPSE ETF FFO gets bids of approx. Rs. 12,000 crore (us$ 1.7 billion) -over two and half times the base issue size of Rs. 4,500 crore (US $471 million)
RMF CPSE ETF FFO receives application from over 2 lakh investors across 300 cities and towns in India.
Largest disinvestment program by government using ETF and largest fund offering by any mutual fund in India till date.
Anchor Investors submitted bids of Rs. 6,000 crore (US $ 895.5 million)
Morgan Stanley, Nomura, Kotak MF, SBI Bank, LIC amongst prominent domestic and foreign institutions that participated as anchor investors.
Non-Anchor portion received bids of Rs.6, 000 crore two times of Rs. 3,000 crore reserved in the issue.
Non-Anchor portion largely subscribed by Retail Investors and PFs – both domestic and foreign
Retail Investors to get first preference and assured allotment as part of the CPSE ETF FFO norms
RMF CPSE ETF FFO planned to raise up to Rs. 4,500 crore (US $ 671 million) as base issue size, with an option to retain oversubscription
Further Fund Offer part of larger disinvestment program announced by the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance
Investors across all categories offered 5% upfront discount
FFO was launched from January 17, 2017 till January 20, 2017
“There has been an exceptional response from investors across all categories in this CPSE ETF FFO and we would like to thank the Ministry of Finance for giving us this opportunity to be part of government’s largest disinvestment program. From a MF perspective, this has been the largest fund offering by any mutual fund till date. We received encouraging responses especially from retail investors across the country and are confident that ETF as a category will gain momentum in future” said Sundeep Sikka, ED and CEO, Reliance Nippon Life Asset Management.
* Numbers as of 06:30 PM, as counting on
Dilip Davda (SEBI registered Research Analyst-Mumbai), a freelance journalist for more than 25 years, is a stock market analyst and news article writer. Since 1985, he has contributed to print media, electronic media and often appears on TV channels as visiting stock analyst. His articles are regularly publishes in Corporate India, Smart Investment (English and Gujarati weekly published from Ahmedabad), Free Press Journal and many other news papers & magazines. He is also a visiting stock analyst on DD News TV Channel.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Above information is based on information available as on date coupled with market perceptions. Author has no plans to invest in this offer.
(SEBI registered Research Analyst-Mumbai).
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