Published on Friday, January 20, 2017 by Dilip Davda
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
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. Any reader taking decisions based on any information published here does so entirely at own risk. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.
(SEBI registered Research Analyst-Mumbai).
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
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