Reliance Mutual Fund CPSE ETF gets an overwhelming response

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

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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. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. 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.

Email: dilip_davda@rediffmail.com

25 Comments

25. ANANDA PRAJAPATI

| Link|January 30, 2017 10:07:57 PMReply

sir how much expected listing price on Reliance Mutual Fund CPSE ETF

25.1. starforce

| Link|January 31, 2017 6:37:45 AM

25.21 rs/unit

25.2. Samirbhai Gandhi

| Link|February 14, 2020 10:10:23 PM

Cpse etf your wiev on this etf

24. HHH

| Link|March 25, 2017 8:13:31 PMReply

How come 25.21??

Avg price should be at 26 .85 around...

I m investor and not allotted still but it is true than last nav is 28.23 around so....big diff and profit....

I have applied for 2/lac..how much I''ll get??

23. Vikram

| Link|January 31, 2017 8:27:51 AMReply

Got an email today as below:

Dear Investor,

Greetings from Reliance Mutual Fund!

We thank you for choosing to invest in the Further Fund Offer(FFO) of CPSE ETF, managed by Reliance Nippon Life Asset Management Limited.

We are pleased to confirm that you have been allotted 5066.000 units at an allotment price of Rs. 25.2141 per unit and the units are being credited to your Demat Account Number XXXXXXXXXXXXXXXXX as provided by you.

The balance amount of Rs. 8.37, towards the refund as per the Supplement to Scheme Information Document, is being refunded to you through RTGS/NEFT/Direct Credit/Warrant to your bank account number xxxxxxxxxxxxxx as registered with your depository participant.

For any assistance, please get in touch with your Financial Advisor / nearest Investor Service Centre or contact us on 1800 300 11111 (Monday to Saturday, 8 am to 9 pm) or write to us at customer_care@reliancemutual.com.

We thank you for investing with Reliance Mutual Fund.

Sincerely,
Reliance Nippon Life Asset Management Limited
(Formerly Reliance Capital Asset Management Limited)
(Asset Manager of Reliance Mutual Fund)

23.1. hiren jagdishbhai garala

| Link|March 25, 2017 8:09:11 PM

When I get this mail??
I mean at what time ?
U applied through broker or direct?
Did u applied for 2lac??

22. starforce

| Link|January 31, 2017 6:36:02 AMReply

allotment done @25.11 ₹

21. Parth

| Link|January 30, 2017 9:07:01 PMReply

2518178 can I check for this application Number please

20. Rk

| Link|January 30, 2017 9:06:49 PMReply

Someone please give me ISIN Number of Reliance Mutual Fund CPSE ETF

20.1. vishal chokshi

| Link|January 30, 2017 10:21:26 PM

allready listed its same isin no INF457M01133

19. sharad

| Link|January 30, 2017 9:06:28 PMReply

I want to know the status

18. sharad

| Link|January 30, 2017 9:04:46 PMReply

Where to check if got no msg I applied my art debited but no msg received yet

17. Ashish

| Link|January 30, 2017 7:24:40 PMReply

Just got 991 no alloted against 25000/- invesment

16. Mukesh

| Link|January 30, 2017 6:49:56 PMReply

I got alloted 7932 nav of cpseetf can i sell tomorrow in the market or is there any lock in date.

15. Sarupam

| Link|January 29, 2017 6:26:43 PMReply

My chq 27 ko debit hua

14. ATHISTAKUMAR

| Link|January 29, 2017 6:15:48 PMReply

WHICH DATE LISTING CPSE ETF

13. RAJA RAJASTHANI

| Link|January 28, 2017 8:20:10 PMReply

Two application of two lakh deposited on 18/01/2017 and received the stamped counter slip

Cheques still not debited

emailed to customer_care@reliancemutual.com and they reply that unable to track the transaction.
Registrar mail ID is not available in brochure.
Any help welcome in this reference.

12. vishal chokshi

| Link|January 25, 2017 10:53:38 PMReply

18/19/20 date closing basis avg price is 26.54 so it will allot by (26.54*5/100 = 1.327) 26.54-1.327 = 25.213 per unit pepole will get.

12.1. Arun Goyal

| Link|January 28, 2017 7:32:15 AM

Good write up Chokshi Bhai..
What is target price in next month?
This is safe investment even as it it in the hands of Reliance!!

11. vishal chokshi

| Link|January 25, 2017 10:43:12 PMReply

Answer of some question regarding CPSC FFO 2
This is a extention of first tranche
First Tranches was 3000 Cr in thia Anchor investor - FII - Corporate - Institution all participate
But In this CPSC 2 fund size is 6000 cr out of 1800 Cr for Anchor investor which start on 17 Jan
And 4200 Cr for Retail investor which start on 18 to 20 Jan 2017
First chance for Retail if not fully subscribe than for others like pension fund - Retirement fund and corporates etc
Allotment on proportionate base
No first come first serve base or No lottery system
Each and every retail investor will get allotment.

Allotment on Average price of 18 19 20 jan NAV for example CPSC ETF on

18 Jan 26
19 jan 26.50
20 jan 27

Than allotment on average of 3 days means @ 26.50

For Anchor investor 1 month lock in period

Foe Retail investor there is no lock in period

Floating is very high in this bcoz when come in 2014 that time pension fund and Retirement fund were not allowed to invest in ETF but Now Govt allow to them to invest 5 % in ETF so demand will be very high bcoz they buy for 5 years and 10 years veiw and this ETF have highest Dividend yeild and almost 15 % CAGR return so on listing Retailer can easily sold with full liquidity.

5 % Discount for Retail

Earlier it was name on goldman sach But goldman mutual fund take over by Reliance mutual fund so its call Reliance CPSC ETF FFO

All PSU basket companies in this CPSC are giving Dividend continue last 10 years.

Documents are required for this CPSC ETF

11.1. ANANDA PRAJAPATI

| Link|January 30, 2017 10:06:57 PM

sir how much expected listing price in CPSE ETF FFO

10. vishal chokshi

| Link|January 25, 2017 10:41:54 PMReply

Answer of some question regarding CPSC FFO 2

This is a extention of first tranche

First Tranches was 3000 Cr in thia Anchor investor - FII - Corporate - Institution all participate

But In this CPSC 2 fund size is 6000 cr out of 1800 Cr for Anchor investor which start on 17 Jan

And 4200 Cr for Retail investor which start on 18 to 20 Jan 2017

First chance for Retail if not fully subscribe than for others like pension fund - Retirement fund and corporates etc

Allotment on proportionate base

No first come first serve base or No lottery system

Each and every retail investor will get allotment.

Allotment on Average price of 18 19 20 jan NAV for example CPSC ETF on

18 Jan 26
19 jan 26.50
20 jan 27

Than allotment on average of 3 days means @ 26.50

For Anchor investor 1 month lock in period

Foe Retail investor there is no lock in period

Floating is very high in this bcoz when come in 2014 that time pension fund and Retirement fund were not allowed to invest in ETF but Now Govt allow to them to invest 5 % in ETF so demand will be very high bcoz they buy for 5 years and 10 years veiw and this ETF have highest Dividend yeild and almost 15 % CAGR return so on listing Retailer can easily sold with full liquidity.

5 % Discount for Retail

Earlier it was name on goldman sach But goldman mutual fund take over by Reliance mutual fund so its call Reliance CPSC ETF FFO

All PSU basket companies in this CPSC are giving Dividend continue last 10 years.

Documents are required for this CPSC ETF

1.Cheque ( No third party allowed)

2.client master list or Demat holding statement (No original required)

3.Pan card xerox

4.KYC form

9. ATUL SHAH

| Link|January 25, 2017 4:05:52 PMReply

CHEQUE DEBITED TODAY

8. RAJA RAJASTHANI

| Link|January 24, 2017 7:16:37 PMReply

My cheque also not debited?

7. RAJA RAJASTHANI

| Link|January 24, 2017 6:57:35 PMReply

CPSE ETF Application status

How to check application status
Any help welcome to check application status

Cheque still not debited

6. RAJA RAJASTHANI

| Link|January 24, 2017 6:46:37 PMReply

Cheque still not debited.

Any help to check application status

5. rajendra shah

| Link|January 24, 2017 10:07:31 AMReply

cheque still not debited?

5.1. RAJA RAJASTHANI

| Link|January 24, 2017 7:17:36 PM

My cheque also not debited?

4. ArunG

| Link|January 24, 2017 7:06:13 AMReply

It is already listed. fresh investors should get the market price average on the stipulated dates less five percent.
Not clear where the money goes? To the companies in basket or Arun Jetley or Reliance..

3. Trust Me

| Link|January 23, 2017 10:22:43 PMReply

Retail investors to get confirmed allotment of their full application amount. Around Rs. 2800 crore was put-in by retailers. All of them get first preference of allotment before pension and long term funds.

2. Kalpesh

| Link|January 23, 2017 11:33:41 AMReply

in CPSE listing gain possible and what news abot at what price to retail investor

1. Mr. reliable

| Link|January 21, 2017 10:11:36 AMReply

retailers will get at what rate the CPSE ETF now.......????

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