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

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 four new companies – NTPC, NLC, SJVN and NBCC, while three companies – GAIL, Container Corporation and Engineers India – exited the index.