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CPSE ETF FFO 5 Review (19th July 2019)

Published on Tuesday, July 9, 2019 by Chittorgarh.com Team

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CPSE ETF FFO 5 Review (19th July 2019)

Reliance Nippon Life Asset Management Ltd is coming up with 5th FFO of CPSE ETF. The fund invests in the NIFTY CPSE Index Stocks. This includes 11 PSU companies selected on the basis of established track record, government holding, market capitalization, dividend history, sector representation, etc.

Note: FFO is short of Following Fund Offers, CPSE is for Central Public Sector Enterprises and ETF is Exchange Traded Funds.

CESE ETF Key Highlights

  • CPSE ETF is an open ended index exchange traded scheme. It tracks the performance of Nifty CPSE Index.
  • CPSE ETF is desiged to facilitate Government of India's initiative to disinvest some of its stake.
  • CPSE ETF FFO 5 is the 6th tranche of CPSE ETF since March 2014.
  • CPSE ETF consists of 11 PSUs
  • Previous CPSE ETF currently trades around ₹26.40 giving a return of 8% plus since inception.
  • CPSE ETF FFO5 Base size is ₹8000 cr to 11500 cr crore.
  • CPSE ETF FFO5 offers upfront discount of 3% to all categories.
  • All previous issues met with overwhelming response.

Offer Documents

CPSE ETF FFO5 Public Issue Detail

Scheme Features

For Anchor Investors

For Non Anchor Investors

FFO 5 Opens on

July 18, 2019

July 19, 2019

FFO 5 Closes on

July 18, 2019

July 19, 2019

Benchmark Index

Nifty CPSE TRI

Pricing

1/100th of Nifty CPSE Index

Fund Manager

Vishal Jain

Load Structure

Entry & Exit Load : NIL*

Category of Investors# (during FFO 5)

  • Retail Individual Investor
  • Qualified Institutional Buyers or QIB
  • Non Institutional Investors
  • Anchor Investors

Minimum application amount @ (during FFO 5)

Retail Individual Investor:

Minimum amount of ₹5,000 and in multiples of ₹1 thereafter

Non Institutional Investors / QIB

Minimum amount of ₹2,00,001 and in multiples of ₹1 thereafter

For Anchor Investor:

Minimum amount of ₹10 Crores and in multiples of ₹1 thereafter

Minimum application amount (during ongoing offer period) (Ongoing Offer commenced on April 04, 2014)

Directly with the Mutual Fund:

Create / Redeem in exchange of Portfolio Deposit and cash component in Creation Unit Size of 1 lakh units of the Scheme.

On the Exchange:

1 (one) Unit and in multiples thereof.

Plans

Growth

Listing

FFO 5 Units offered pursuant to the FFO 5, listed on NSE and BSE on or before August 02, 2019. However Units of the existing CPSE ETF Scheme were listed on 04th April 2014 on NSE & BSE.

Maximum Amount to be Raised during FFO 5^

"Initial Amount" of ₹8,000 crores plus an "Additional Amount" (if any)

Discount Offered by GOI**

Discount of 3% (Three percent) on the "FFO 5 Reference Market Price" of the underlying shares of Nifty CPSE Index shall be offered to FFO 5 by GOI.


CPSE ETF FFO5 review

Reliance Mutual fund, that started CPSE for PSU stock basket in the year 2014 (March 14)and met with astounding success and fancy from investors across board. Now it is coming out with sixth issue of CPSE as FFO5. Considering its fancy among investors, DIPAM (Government of India's disinvestment department) has hinted for at least 10 CPSE to be listed on bourses before this fiscal end. This is in a bid to achieve the target of disinvestment of ₹105000 crore.

As we know, CPSE is a mix basket of PSUs of various sectors. Previous all CPSE offers have given lucrative returns to investors and hence all are eagerly waiting for this offer to open.

Earlier CPSE offers subscription data will help investors to take a call on investment:

CPSE ETF Subscription History

CPSE

Month

Amt proposed (₹ Cr)

Bids Received (₹ Cr)

Refund Amt (₹ Cr)

NFO 2014

March

3000.00

4363.00

1363.00

FFO1 2017

Jan

6000.00

13705.00

7705.00

FFO2 2017

March

2500.00

10083.00

7583.00

FFO3 2018

Nov.

17000.00

31203.00

14203.00

FFO4 2019

March

10000.00

30464.00

20464.00

Thus one can see that every time issue got overwhelming response and fund had to refund.

On returns aspect too CPSE gave better returns in medium to long term. Particularly last to CPSEs rewarded as under:

  • CPSE FFO 3 gave return of 27.85% v/s 11% in Nifty
  • CPSE FFO 4 gave return of 11.97%v/s 2% in Nifty

ISSUE DETAILS

CPSE FFO5 offer is opening on 18th July 2019 (only for a day) for Anchor investors and on 19.07.19 for other categories i.e. HNIs and Retail. Minimum investment is to be made for ₹5000 and in multiples of Re.1 thereon, thereafter. Maximum investment by retail investor is ₹2 lakh.

Since this is mutual fund scheme, cheque is to be given along with the application on the opening day of the issue by respective categories of investors.

This time the base size is ₹8000 cr. but fund may keep the total subscription up to ₹12000 cr. post permission from the DIPAM.

All categories of investors are eligible for 3% discount on the final price arrived at for the allotment. Anchor portion is 30% and non-anchor (i.e. other than Anchor) portion is 70% of the total issue size. CPSE is last quoted at ₹26.11 per unit on NSE (as on 16.07.19)

This CPSE basket includes ONGC, Coal India, NTPC, Indian Oil, PFC, Bharat Electronics, Oil India, NBCC, NLC India and SJVN Ltd.


VALUATION PARAMETERS:

Nifty CPSE Index on an aggregate is being offered at a "34% -to- 46% discount to Nifty 50 Valuations"

  • FY21 PB(x): Nifty 50 2.4x vs CPSE 1.3x, ~46% lower
  • FY21 PE(x): Nifty 50 15.8x vs CPSE 8.5x, ~46% lower
  • FY21 EV/Ebitda (x): Nifty 50 9.3x vs CPSE 6.2x, ~34% lower
  • Dividend Yield %: Nifty 50 1.24% vs CPSE 4.89%, 3.9x times
  • RoE %: Nifty 50 12% - 15% vs CPSE 13% - 14% (RoE % of CPSE Basket almost same as Nifty 50, even though valuations at a steep-discount)

CPSE ETF Calendar Year Returns

YEAR

CPSE ETF

NIFTY 50 TRI

2014*

44.1%

24.9%

2015

-14.3%

-3.0%

2016

17.4%

4.4%

2017

19.4%

30.4%

2018

-18.9%

4.6%

2019**

16.6%

9.2%

* Returns from CPSE ETF inception date i.e. 28.03.2014

** Data ended 28.06.2019. (source: MFI)


CPSE Public Issue Historic Return

Name

Size (₹ Cr)

Discount

Listing Date

Listing Day - Max Gain*

10 Days Holding Gain*

20 Days Holding Gain*

30 Days Holding Gain*

CPSE ETF

3000

5%

4th Apr 2014

₹17500

₹19800

₹25190

₹24750

CPSE ETF FF0 1

6000

5%

30th Jan 2017

₹22090

₹23280

₹23120

₹24160

CPSE ETF FFO 2

2500

3.50%

27th Mar 2017

₹7420

₹8630

₹16450

₹16670

CPSE ETF FFO 3

8000

4.50%

10th Dec 2013

₹740

₹18660

₹20270

₹17760

CPSE ETF FF04

10000

4%

1st April 2019

₹13070

₹13540

₹14250

₹16520

Bharat 22 FFO Historic Return

Name

Size (₹ Cr)

Discount

Listing Date

Listing Day - Max Gain*

10 Days Holding Gain*

20 Days Holding Gain*

30 Days Holding Gain*

Bharat 22 ETF

8000

3%

28th Nov 2017

₹7950

₹4060

₹7450

₹11730

Bharat 22 ETF FFO 1

8400

2.50%

2nd July 2018

(₹960)

₹3067

₹2290

₹11810

Bharat 22 ETF FF0 2

3500

5%

25th Feb 2019

₹15740

₹28114

₹33770

₹39210

*All returns on the bask of 200000 Application


NIFTY CPSE Index

NIFTY CPSE Index has been constructed to facilitate Government of India's initiative to disinvest some of its stake in Central Public Sector Enterprises (CPSEs) through ETF route. The index comprises of select 10 CPSEs. The index has a base date of Jan 01, 2009 and base value of 1000. One of the largest Indian equity ETFs tracks NIFTY CPSE Index.

Nifty CPSE Index Portfolio Information

MethodologyPeriodic Capped Free Float
No. of Constituents11 Companies
Launch DateMarch 18, 2014
Base DateJanuary 01, 2009
Base Value1000
Calculation FrequencyOnline Daily
Index RebalancingQuarterly Weight Rebalancing

As of June 28, 2019 composition of CPSE ETF is as under:

CPSE Composition

No.

Company Name

Industry

Weightage %

3

Oil & Natural Gas Corporation Ltd.

Oil

20%

1

NTPC Ltd.

Power

20.00%

2

Coal India Ltd.

Minerals/Mining

20.00%

4

Indian Oil Corporation Ltd.

Petroleum Products

20.00%

5

Power Finance Corporation Ltd.

Finance

7.80%

6

Bharat Electronics Ltd.

Industrial Capital Goods

6.04%

7

Oil India Ltd.

Oil

3.01%

8

NBCC (India) Ltd.

Construction

1.84%

9

NLC INDIA Ltd.

Power

0.73%

10

SJVN Ltd.

Finance

0.58%

CPSE ETF Information

Type of SchemeOpen Ended Index Exchange Traded Scheme
Fund size₹8,198.09 Cr (Monthly Average)
Dividend Yield5.52% (as of March 2019)
Exchange ListedNSE, BSE
NSE SymbolCPSEETF
BSE Code538057
ISININF457M01133
Entry LoadNil
Exit LoadNil
Exit LoadNil

ABOUT CPSE FFO 5

CPSE ETF is an open ended index exchange traded scheme designed disinvest of goverment of India's stack in 11 PSU Companies. CPSE ETF is managed by Reliance Nippon Life Asset Management Ltd through Reliance Mutual Fund business unit. Company has so far brought 4 tranches of CPSE ETF with maiden fund offer (NFO) in March 2014 and thereafter 3 successive Following Fund Offers (FFOs) in January 2017, March 2017 and Nov 2018 is now coming out with CPSE ETF FFO5.

Offer of Units of ₹10 each (i.e. face value) for cash (on allotment, the value of each Unit would be approximately 1/100th of the value of Nifty CPSE Index) to be issued at a premium, if any, approximately equal to the difference between face value and FFO 5 Allotment Price during the Further Fund Offer 5 (FFO 5) and at NAV based prices thereafter. For the existing CPSE ETF the Ongoing Offer Period for the Scheme commenced on April 04, 2014. CPSE ETF is an open ended index scheme listed on the Exchange in the form of an Exchange Traded Fund (ETF), which tracks the Nifty CPSE Index.

CPSE ETF Scheme

CPSE ETF is a passive investment fund that was created to help the government in its disinvestment program of divesting stake in select Central Public Sector Enterprises (CPSE) through Exchange Traded Funds (ETF). The fund invests in the Nifty CPSE Index stocks - that includes eleven PSU companies (Maharatnas, Navratnas, Miniratnas, Sector Leaders) selected on the basis of established track record, government holding, market capitalization, dividend history, sector representation, etc. - in the same proportion and weightage as of the index.

The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of the Securities as represented by the Nifty CPSE Index, by investing in the Securities which are constituents of the Nifty CPSE Index in the same proportion as in the Index. However the performance of the Scheme may differ from that of underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

CPSE ETF NFO, FFO & FFO 2 received overwhelming response as its collection was ₹4,363 Crs, ₹13,705 Crs and ₹10,083 Crs respectively, out of which ₹1,363 Crs, ₹7,705 and ₹7,583 Crs respectively was refunded to investors due to the limited issue size of ₹3,000, ₹6000 Crs and ₹2,500 Crs respectively. This time for CPSE ETF FFO3 the base limit is ₹8000 cr. and the Fund has permission to keep oversubscription up to 75% of the base size i.e. ₹6000 cr. thus making the overall fund offer of ₹14000 cr. All these ETFs are listed on BSE and NSE.

CPSE ETF Product Label

History of CPSE ETF Public Offer

New Fund Offer (NFO)

  • NFO was first launched in March 2014
  • NFO received overwhelming response; NFO collection was ₹4,363 Crs, out of which ₹1,363 Crs was refund to investors due to limited issue size of ₹3,000 Crs
  • Participation across various categories of investors
  • Units of CPSE ETF were listed on 04th April 2014 on NSE & BSE

Further Fund Offer (FFO)

  • FFO was launched in January 2017
  • FFO received overwhelming response; FFO collection was ₹13,705 crs, out of which ₹7,705 crs was refund to investors due to limited issue size of ₹6,000 Crs
  • Participation across various categories of investors
  • FFO Units of CPSE ETF were listed on 31st January 2017 on NSE & BSE

Further Fund Offer 2 (FFO 2)

  • FFO 2 was launched in March 2017
  • FFO 2 received overwhelming response; FFO 2 collection was ₹10,083 crs, out of which ₹7,583 crs was refund to investors due to the issue size limit of ₹2,500 crs.
  • Participation across various categories of investors
  • Units of CPSE ETF were listed on 28th March 2017 on NSE & BSE

Further Fund Offer 3 (FFO 3)

  • FFO 3 was launched in November 2018
  • FFO 3 received overwhelming response; FFO 3 collection was ₹31,203 crs, out of which ₹14,203 crs was refund to investors due to the issue size limit of ₹17,000 crs.
  • Participation across various categories of investors
  • Units of CPSE ETF were listed on 10th December 2018 on NSE & BSE

Further Fund Offer 4 (FFO 4)

  • FFO 4 was launched in March 2019
  • FFO 4 received overwhelming response; FFO 4 collection was ₹30,464 crs, out of which ₹20,464 crs was refund to investors due to the issue size limit of ₹10,000 crs.
  • Participation across various categories of investors
  • Units of CPSE ETF were listed on 1st April 2019 on NSE & BSE

Further Fund Offer 5 (FFO 5) Investment Rationale

  • Play on India growth story through investment in the large CPSE stocks at relatively better valuations compared to other broader indices.
  • Portfolio diversification through investment in blue-chip Maharatna, Navaratna & Miniratna CPSE stocks majority of which are which are sector leaders / near monopolies.
  • FFO 5 price advantage – Discount to all categories of investors.
  • Valuation and Dividend Yields: Reasonable P/E ratio and dividend yields compared to broader market index.
  • Relatively lower correlation ranging from 0.57 to 0.68 vis-à-vis Nifty 50 index (over 1 Year & 3 Years period ending 28th June, 2019), helping portfolio diversification.
  • Flexibility of trading on real time basis.
  • Low expense ratio i.e. 0.0095%.
  • Investors will be able to diversify exposure across a number of Public Sector companies through a single investment.

CONCLUSION

Based on CPSE ETF rewards to investors for all previous floats, investment in this CPSE FFO5 is recommended for medium to long term rewards.

FAQ's

  1. How to apply in CPSE ETF FFO?

    You could apply in CPSE ETF FFO directly through your broker. All brokers including full-service and discount brokers offer CPSE ETF FFO.

    To apply in CPSE ETF FFO:

    1. Add the application amount to your trading account.
    2. Contact your stock broker on July 19, 2019, and place the order.

    Zerodha CPSE ETF FFO

    Click on the below link to apply in CPSE ETF through Zerodha:

    Zerodha CPSE FFO5 Application

    ICICI CPSE ETF FFO

    Steps to apply in CPSE ETF FFO with ICICI:

    1. Login to ICICIDirect.com website or on mobile app
    2. Go to 'Mutual Fund'
    3. A popup will show the link to "CPSE ETF FFO 5 - RETAIL INVESTORS - INVESTMENTS UPTO 2 LAKHS"
    4. Click 'Purchase' button

    5Paisa CPSE ETF FFO Applcation

    Steps to apply in CPSE ETF FFO with 5paisa.com:

    1. Login to 5paisa.com
    2. Go to 'Mutual Funds'
    3. Click on 'New Fund Offer'
    4. Check for scheme name 'CPSE ETF'
    5. Click Invest Now

    IIFL CPSE ETF FFO Applcation

    Steps to apply in CPSE ETF FFO with IIFL:

    1. Login to IIFL trading website or terminal
    2. Go to 'Mutual Funds'
    3. Click on 'New Fund Offer'
    4. Check for scheme name 'CPSE ETF'
    5. Click Invest Now

    Reliance Mutual Fund CPSE ETF FFO Application

    If your broker doesn't offer an option to apply in CPSE ETF, you could directly apply through Reliance Mutual website:

    CPSE ETF FFO 5 Application

    You could use your demat account with any broker and pay by NEFT or debut card of any bank.


    Note that most stock broker provides an online form to submit the FFO application. The link of the form is shared by the broker via email or publishing as alert on their website.

    Note that unlike IPO, there is no ASBA or UPI process invoiced in the FFO application.

    Discuss this question

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61 Comments

avatar
61. Sethuraman  Jul 20, 2019 16:32 Reply
I applied CPSE ETF FFO5 THROUGH MY BROKER MOTILAL OSWAL FOR RS.2 LAKHS. THEY HAVE CHARGED RS.1180/-. IS THERE ANY CHARGES APPLICABLE FOR THIS ISSUE?. PL CLARIFY.
avatar
61.1. ritesh  Jul 20, 2019 18:56
No charges by other broker
avatar
61.2. Anil Chawla  Jul 21, 2019 00:28
They Charge for Interest, If you have Not paid full Amount
avatar
60. Parthiv s  Jul 20, 2019 18:27 Reply
hi anybody know that where check application status of ETF.
i applied via Reliance site but not give me any Reciept or Acknowledge...
avatar
60.1. ritesh  Jul 20, 2019 18:54
You can't check etf application status like ipo.
avatar
60.2. Parthiv s  Jul 20, 2019 20:06
Thanks ritesh ji...
avatar
59. mjs  Jul 20, 2019 13:06 Reply
Kitna paisa mil sakta he.
avatar
59.1. ritesh  Jul 20, 2019 15:12
Arround 5% to 7% on allotment amount
avatar
58. ipo jam  Jul 20, 2019 11:54 Reply
Any grey mkt premium
avatar
57. Chirag r Joshi  Jul 20, 2019 11:09 Reply
I applied through Icici Direct. Amount Is Deducted but no Confirmation received as of now.
avatar
56. Ordinary Visioner  Jul 20, 2019 09:06 Reply
Good morning..
CPSE ETF issue subscribed 5 times more than 40000 CR.
DIPAM announce that now the revised size of this issue is 11500 CR. so retailer can get allotment.

on other hand allotment price will be between 24.55 to 24.65.
so we need nifty support and lets just hope value of CPSE ETF will increase so we can get 1-2% listing gain..

i am wondering this time retailers maybe get refund of their amount. so not 100% acceptance like previous issues.
Good luck to all investors.
avatar
55. sudeep  Jul 19, 2019 21:39 Reply
August PSUs

IRCON OFS
Stake Sale 25%
Estimated Offer Price 380

Mazagon Dock IPO after revising issue size upto 35% stake sale.Issue size 600 - 800 cr.
avatar
54. Dinesh Singh  Jul 19, 2019 14:52 Reply
How many times it is subscribed in Retail category?
Any one have idea.
avatar
54.4. Medge  Jul 19, 2019 21:22
Top Contributor Top Contributor (300+ Posts, 400+ Likes)
Offer size increases to 11500 cr due to high subscription
avatar
54.5. Medge  Jul 19, 2019 21:29
Top Contributor Top Contributor (300+ Posts, 400+ Likes)
Today's subscription around 25000 cr retail+HNI
avatar
53. sudeep  Jul 19, 2019 18:04 Reply
One can still apply directly from the reliance site If anybody missed the chance.
avatar
53.1. K. R KISHORE  Jul 19, 2019 19:18
sudeep

I HAVE PAID THROUGH RELIANCE MUTUAL FUND WEBSITE AFTER PAYMENT DONE BANK PAGE WAS STUCK. AMOUNT WAS DEBITED BUT NO ACKNOWLEDGEMENT FROM THE RELIANCE MUTUAL FUND . SO, WHAT SHOULD I DO NOW.
avatar
53.2. sudeep  Jul 19, 2019 20:43
Relax. If amount debited then you will get allotment.You will get confirmation by tomorrow or on monday.You can club it with another submission with min. amount of 5000 rs.Gud Luck.
avatar
52. Krish  Jul 19, 2019 19:09 Reply
Had placed an order at 9am this morning. Even at 7pm, it is not reflecting in my account, and money is not debited either. Do any of you have different experience on Zerodha?
avatar
52.2. Team Chittorgarh.com  Jul 19, 2019 19:34
Hi Krish & Bull,
This is usual. It should settle by end of day. Here is the detail which may help:

CPSE ETF FFO5 Tentative Timelines

During Subscription Period (T day): 19 Jul, 2019
Subscription hours: 09:00 am - 6:00 pm
T+1 day: 22 Jul, 2019
Modification of window for mismatch subscription/application after depository validation: 08:30 am - 10:30 am
Funds obligation report: After Closure of modification session
Cut of time for Bids Withdrawal Request for funds by Participant (N-Mass): 01:00 pm
Cut off time to provide clear funds for funds collection: 01:30 pm
avatar
52.3. sudeep  Jul 19, 2019 20:38
Still You both can apply now from reliance site with min. amount 5000 if there there is any technical error from your broker.
Applying from the site itself is the best option of all.
Your all investment applications will be clubbed together on 22nd unlike IPO in which multiple applications get rejected.Gud luck.
avatar
51. dhyan jain  Jul 19, 2019 19:30 Reply
@Admin
PleAse post subscription of retailers in cpse.
avatar
50. Nirav  Jul 19, 2019 19:29 Reply
IF U HAVE HEARD ANY ONE ABOUT OVER ALL SUBSCRIPTION FIGURE?
avatar
49. Jignesh  Jul 19, 2019 18:35 Reply
At which price cpse etf ffo gives 3% discount
avatar
48. sudeep  Jul 19, 2019 10:00 Reply
Apply from reliance site.
NEFT and card payment options available covering all banks.
Steps.
Register through PAN and other KYC details online.
Select CPSE ETF from all mutual funds category.
Pay from the options available like you pay on amazon,flipkart etc.

Allotment is 100% available to retailers on next Friday.It's not like IPO lottery.So decide your pay amount wisely.Good luck to all of us for better listing on Monday.
avatar
48.1. Azhar  Jul 19, 2019 16:09
At what price this ETF will allotted?
avatar
48.2. sudeep  Jul 19, 2019 17:58
Somewhere Around 24.6500
avatar
47. AJAY SHARMA  Jul 19, 2019 17:22 Reply
26 OR 29 WILL BE LISTING DATE
avatar
47.1. sudeep  Jul 19, 2019 17:48
allotment will be on 26 after 12 p.m.so keep checking your demat a/c frequently on that day.
After allotment you can sell any time any day-26/29.
avatar
46. KAMMA SIVA RAMA KRISHNA  Jul 18, 2019 22:42 Reply
How is the response of Anchor Investors? Experts to please guide whether to invest or to stay away? Thanks in advance. All the best for investing families.
avatar
46.3. Team Chittorgarh.com  Jul 19, 2019 09:34
Anchor Investor Total Application Amount: Rs. 19,980.32 Cr.

Anchor portion is Rs 2400 Cr (30% of the Rs 8000 Cr).

It over-subscribed 8.32 times. This is a good response.
avatar
46.4. KAMMA SIVA RAMA KRISHNA  Jul 19, 2019 14:02
Thank you all for your kind information. I have applied for maximum in retail category.
avatar
45. Papan  Jul 19, 2019 12:27 Reply
As finance bill is passed yesterday will cpse etf qualify for tax deduction under 80c. Is so will lock in for 3 years. Not interested. Lost faith in this govt. So many type of tax. Tax ke upar tax uske upar fir tax.
avatar
45.1. Team Chittorgarh.com  Jul 19, 2019 12:34
Hi Papan, There is no locking period for retail customer.
avatar
44. PUNIT KUMAR  Jul 19, 2019 09:54 Reply
@ADMIN
I AM IIFL USER, HOW TO APPLY FOR CPSE ETF FFO 5 IN IIFL
PLZ SUGGEST ME
avatar
44.2. PUNIT KUMAR  Jul 19, 2019 11:49
THANKS @ADMIN,

I FIND THE OPTION TO INVEST IN CPSE ETF IN MF NFO IN IIFL TERMINAL.
avatar
44.3. Team Chittorgarh.com  Jul 19, 2019 12:28
IIFL and 5paisa finally added CPSE ETF under 'Mutual Fund' > 'New Fund Offering'.
avatar
43. Team Chittorgarh.com  Jul 19, 2019 10:05 Reply
If your broker doesn't offer an option to apply in CPSE ETF, you could directly apply through Reliance Mutual website:

CPSE ETF FFO 5 Application


avatar
42. Ordinary Visioner  Jul 19, 2019 09:37 Reply
@Admin,
i am zerodha user.
i placed my bid from the link you gave me but i can't see the order i placed.
so is there any menu or tab where i can see my order placed successfully?
thank you.
avatar
42.1. Team Chittorgarh.com  Jul 19, 2019 09:45
Zerodha doesn't show the order detail but as long as it said successfully placed the order, your should be fine.

If you have doubts, please place the order again. Zerodha will mostly compile and send all the orders at the end of the day.

You could also call Zerodha and check the status.

avatar
42.2. Ordinary Visioner  Jul 19, 2019 09:50
@Admin,
thank you so much for information.
avatar
41. Team Chittorgarh.com  Jul 19, 2019 09:46 Reply
ICICI CPSE ETF FFO Application:

Steps to apply:
1. Login to ICICIDirect.com website or on mobile app
2. Go to 'Mutual Fund'
3. A popup will show the link to "CPSE ETF FFO 5 - RETAIL INVESTORS - INVESTMENTS UPTO 2 LAKHS"
4. Click 'Purchase' button
avatar
40. RIGHTMAN  Jul 19, 2019 09:39 Reply
hello experts..
i am having demat account in sharekhan and saving account in sbi....how to apply cpse etf online plz guide
avatar
40.1. Ordinary Visioner  Jul 19, 2019 09:41
sir first you have to transfer your fund to sharekhan (your broker)
and then ask them to put bid for you.
avatar
39. Ordinary Visioner  Jul 19, 2019 08:55 Reply
what is latest GMP today?
experts please share.
avatar
38. Team Chittorgarh.com  Jul 19, 2019 08:40 Reply
avatar
38.1. Ordinary Visioner  Jul 19, 2019 08:47
Thank your Dear Admin.
it is such a great thing admins is willingly taking part in convo.
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37. Ordinary Visioner  Jul 19, 2019 08:43 Reply
kindly have a look.
https://www.business-standard.com/article/markets/cpse-etf-anchor-issue-subscribed-8-times-opens-for-retail-investors-today-119071900067_1.html

more than 8 times.
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36. Ordinary Visioner  Jul 19, 2019 08:40 Reply
there is some big names in anchor subscription list.
VKMC sir can say further comments what to do?
i am suggesting to go to it.
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35. R Subramanian  Jul 18, 2019 20:42 Reply
An article with vested interest. Not touched the sensitive aspect, net price at which allotment was done vis-a-vis current market price. In fact loss incurred by continuous holding by investors is conveniently forgotten. An expert should make a comprehensive coverage. Else, it will be misleading.
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35.1. Ordinary Visioner  Jul 19, 2019 08:37
sir please note down we all here talk about some listing gain 1-2%.
no one wants to hold it.
thank you.
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34. Ordinary Visioner  Jul 18, 2019 11:08 Reply
Experts please share current GMP for final decision.
thank you.
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34.6. NarenGoud  Jul 18, 2019 17:23
Ordinary Visioner : I have same question. whether to apply it or skip it? Any suggestions .
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34.7. Ordinary Visioner  Jul 19, 2019 08:36
Dear naren,
i suggest you to go for it.
apply.
i am also applying it.
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33. VKMC  Jul 18, 2019 13:42 Reply
*Discount is on the FFO 5 Reference Market Price. FFO 5 Reference Market Price is determined based on the average of full day volume weighted average price on the NSE during the Non Anchor Investor FFO 5 Period (inclusive of Non Anchor Investor FFO 5 Period open as well as close date) for each of the index constituents of the Nifty CPSE Index.
Post closure of FFO 5, the Scheme will purchase the underlying Index constituents from GOI. Discount will be on shares to be offered by the Government of India. In the event an index constituent is purchased fully or partially from open market to meet Maximum Amount to be Raised during FFO 5, no discount will be offered on such purchase of index constituent from open market.
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33.3. VKMC  Jul 18, 2019 19:06
Very much possible. Most of the index constituents are PSU energy stocks and they are very volatile. If the overall market is down then we can wait otherwise sell it on allotment day.
My take is that all the index shares are already highly beaten to death. Chances of going further down are less. But you never know.
FYI I am going to apply in full force unless there is any bad news tomorrow.
I am hoping for 4 - 6 % gain.
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33.4. Ordinary Visioner  Jul 19, 2019 08:35
sir i am also applying in full force.
after seen anchor subscription it is looking good.
so can you tell me your final review?
are you make any change to your decision?
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32. Medge  Jul 19, 2019 06:52 Reply
Top Contributor Top Contributor (300+ Posts, 400+ Likes)
Anchor portion subscribed by 6Times total 19980Cr,

https://www.reliancemutual.com/FundsAndPerformance/Pages/AnchorInvestorslist.aspx
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31. R Subramanian  Jul 18, 2019 21:01 Reply
Is there any margin of safety, as it is controlled by ADAG, who have ruined almost everything.
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31.1. jitesh  Jul 18, 2019 21:29
It's like Rafale deal.Modi and Anil Ambani shaked hands to cheat in new style.Precautionary measures must be taken , otherwise we'll be fooled like Rahul Gandhi.
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30. Ordinary Visioner  Jul 18, 2019 13:05 Reply
Dear Admin,
can we track this CPSE ETF subscription ratio like IPO?
and today is anchor portion opening, so by the day end can we know how much anchor portion subscribed?
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30.1. Ordinary Visioner  Jul 18, 2019 15:52
@Admin
Kindly Reply.
Post the numbers of anchor subscription after day end.
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29. Pawan surat  Jul 18, 2019 14:24 Reply
KOSTAK - 3000-3200 FOR 2 lakhs
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29.1. Ordinary Visioner  Jul 18, 2019 15:47
@pawan surat
Thank you for info
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28. VIJAY AGRAWAL  Jul 18, 2019 15:06 Reply
HOW CAN APPLIED ONLINE
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28.1. VKMC  Jul 18, 2019 15:17
https://www.reliancemutual.com/
Link to apply will be added tomorrow.
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27. investormahesh  Jul 18, 2019 09:17 Reply
Hello friends, contradictory information is available on different websites. If i invest in cpse etf through Reliance mf website on 19th July, as a retail investor, will the allotted units have 3 year lock in or not? Will the Reliance mf website give 2 different options ie one open-ended (which can be sold after allotment) and one with lock in?
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27.4. Ordinary Visioner  Jul 18, 2019 10:36
@investormahesh
there is no lock in period for retail customers.
they can sell for listing gains.
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27.5. investormahesh  Jul 18, 2019 14:21
Ordinary Visioner thanks for reply
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26. investormahesh  Jul 17, 2019 20:24 Reply
FM announced that investments in CPSE ETF will be eligible for deduction under section 80C of IT Act. Some websites are also claiming so. But i guess it will not apply at present (to this issue -ETF) because benefit under section 80C comes with at least 3 years' lock in period. Please give your views regarding lock in period.
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26.1. Ordinary Visioner  Jul 18, 2019 10:42
it can apply for present CPSE ETF ISSUE also.
but have a look at basic small information.
you can get tax benefits from cpse etf when you are holding it from atleast 3 years. or in lock in period.
if you don't want to show this in your 80-c then you can sell this anytime you want but you can not get the 1.5 lakhs tax benefits.
thank you.
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26.2. investormahesh  Jul 18, 2019 14:20
Ordinary Visioner thanks for reply
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25. investormahesh  Jul 18, 2019 09:16 Reply
Hello friends, what is the process of allotment of cpse etf in case of over-subscription? Let us say retail investor portion is over-subscribed two times. Units worth how much will be allotted to retail investor who has paid Rs 2 lakh and how much to the one who has paid Rs 1 lakh?
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25.5. Ordinary Visioner  Jul 18, 2019 10:57
Thank you admin.
i also have slight idea about they always give first preference to retailers.
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25.6. investormahesh  Jul 18, 2019 14:17
Ordinary visioner and Team Chittorgarh thanks for reply
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24. Ordinary Visioner  Jul 18, 2019 11:01 Reply
Dear admin & all experts,
can someone give information about if this cpse etf ever announced dividend or not?
they are mentioning 5% dividend yield everywhere.
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24.3. VKMC  Jul 18, 2019 12:39
how many times it happened in past? if you mean dividend, most of these PSU stocks give dividend from time to time, usually two times a year. This information is available online.
any idea how can we know the price difference from NAV? - My understanding is as below. NAV is calculated based on the current price of each of the constituents stocks. Since it is exchange traded fund, the trading price varies with the NAV. To maintain the NAV of the ETF on the exchange, the AMC appoints Authorised Participants (AP) who continuously buy / sell this ETF units to maintain the NAV price on the exchange. You may always notice couple of big unit buyer or seller in the range of 400000 around the NAV price.
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24.4. Ordinary Visioner  Jul 18, 2019 12:59
Thank you so much for reply.
i understand your information.
so the question next arrive is,
lets take cmp of cpse etf is 25.60
so in this nav how much dividend has been allot from march,2014.
starting of fund,
and if we want this information of how much dividend and how many times it has been added so people can think for long term if dividend amount is handsome.
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23. Hitesh zala  Jul 16, 2019 11:31 Reply
Retailer discount any?
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23.1. Team Chittorgarh.com  Jul 18, 2019 11:23
3% discount is offered to retail investors.
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22. SKP  Jul 18, 2019 11:00 Reply
What is the price band of this offer.
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22.1. Team Chittorgarh.com  Jul 18, 2019 11:22
The FFO 5 Allotment Price would be approximately equal to 1/100th of Nifty CPSE Index and would be calculated post considering retail discount on the day of allotment.

This is different from IPO's where price or price band is declared upfront.
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21. Ramesh jain  Jul 16, 2019 14:36 Reply
What is SP Tulsian view on it ?? If 3% discount is to be taken into account, and if this is the only gain then listing will not happen at premium??
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21.1. Team Chittorgarh.com  Jul 18, 2019 11:18
Hi Ramesh,
Historically it gave positive listing gains and short term gains to retail investors. Please check the "CPSE Public Issue Historic Return" table above for more detail.
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20. vijay  Jul 17, 2019 14:15 Reply
how to apply
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20.1. Team Chittorgarh.com  Jul 18, 2019 11:16
You could apply in CPSE ETF FFO directly through your broker. Simply contact your broker and ask him for the process of applying in FFO. Brokers like Zerodha and ICICI have an online form on their website for applying in CPSE ETF FFO.
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19. Bab  Jul 17, 2019 21:24 Reply
Online apply kar sakte hai Kya or kaise apply Kare?
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19.1. Ordinary Visioner  Jul 18, 2019 10:39
yes aap online apply kar sakte hai...
reliance mutual fund ki website se.. & zerodha ki website me se..
i think icici bank bhi kuch options provide krta haii
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19.2. Team Chittorgarh.com  Jul 18, 2019 11:05
Simply contact your stock broker and ask them how to place an order for CPSE FFO. Most brokers have a special webpage for these type of offers. They share the link in email. You can also place the order on call through your broker.

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18. Ordinary Visioner  Jul 18, 2019 11:05 Reply
for retail investors and HNI and for on anchor portion is almost 70% in this CPSE ETF offer.
so retailers do not have to worry more.
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17. HARESH BARAI  Jul 17, 2019 18:26 Reply
asba application valid or not
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17.1. Ordinary Visioner  Jul 18, 2019 10:44
no you can not apply from ASBA application.
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17.2. Team Chittorgarh.com  Jul 18, 2019 11:01
Dear Sir,

This is not an IPO. The FFO bids are placed directly through your broker. There is no ASBA or UPI involved in FFO public issues.

To place the order, keep the required money in your trading account and contact your broker on 19/07/2019 to place the order on your behalf.
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16. Ordinary Visioner  Jul 18, 2019 10:56 Reply
Fund Manager vishal jain in his latest interview.

How can you invest in CPSE ETF to save tax under Section 80C?
In the Budget, it has been mentioned that the CPSE ETF will be eligible for 80C benefits. As the Finance Bill has not been passed till now, it has not yet got implemented and once the Finance Bill is passed, there will be a bit of operational work that will need to be done from the exchanges. My belief is that in the next two to three months that should be up and running and we will see a larger amount of retail interest in ETFs.

Complete article,
https://economictimes.indiatimes.com/markets/expert-view/dividend-yield-of-cpse-basket-is-5-against-1-25-for-nifty-vishal-jain-reliance-nippon-life-amc/articleshow/70260489.cms
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15. Ordinary Visioner  Jul 18, 2019 10:50 Reply
To all the investors who want to get tax benefits from ETFs.
as per my point of view,
BHARAT 22 will be give more Return compare to CPSE ETF.
also attractive discount and some nice private companies are their.
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14. VKMC  Jul 17, 2019 20:18 Reply
Guys
This is not like a normal IPO. This is more like an index fund. Allotment price (NAV) will be based on the price of the constituents PSU share prices. So if the price of these constituents shares goes down, then the fund price could go down as well. The 3% discount is not a discount to the allotment price. GoI gives 3% discount on the price of the PSU share which somewhat gets reflected to the allotment price.
This time GoI may not sell all required constituents shares to the fund then in that case the AMC (Reliance Mutual Fund) will buy the constituents shares from the market. In that case, the 3% discount gets further diluted.
My take is apply for it and then sell on allotment ASAP.
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14.1. Ordinary Visioner  Jul 18, 2019 10:44
dear sir,
most off people apply for CPSE ETF issue for only listing gains.
according to past records people got listing gain.
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13. B.L.Agarwal  Jul 17, 2019 09:46 Reply
No return in 2yr6months . returns are nigative.no dividend invested 150000/- in Jan 17 now value is 148000/-.
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13.1. sanjeev  Jul 17, 2019 19:36
Trading at same price.No more India's growth story.Fake 5% Dividend yield claim is eye opener.
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12. Braj Bala  Jul 17, 2019 13:07 Reply
Worst issue of code etc, I have allotted in Jan 17, negative returns,,no dividend
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12.1. Uchit Patel  Jul 17, 2019 13:34
This is Growth plan. How you expect dividend ?



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