CPSE ETF to reopen for investors next month

Tags: CPSE ETF, News
Investors will get another chance to own a portfolio of bluechip PSU stocks offered in the CPSE Exchange Traded Fund (ETF) as the scheme will reopen for subscription in the first week of April.

The New Fund Offer (NFO), which closed on March 21 after mopping up bids worth Rs 4,200 crore, is expected to see renewed inflows as the excess demand of Rs 1,200 crore may come in when the subscription reopens.

The government had targeted raising Rs 3,000 crore through the scheme, its first attempt to garner disinvestment proceeds via the mutual fund route. The NFO saw encouraging response as investors, both domestic and foreign, pumped in funds even as stock markets mostly remained range-bound.

"The scheme will reopen for continuous subscription and redemption on or before April 4 instead of the earlier announced April 11, so as to give interested investors a chance to invest and trade freely," a source said.

The CPSE ETF basket consists of shares of 10 PSUs and provides an opportunity for investors to become part-owners of Oil & Natural Gas Corp, GAIL India, Coal India, Indian Oil, Oil India, Power Finance Corp, Rural Electrification Corp, Container Corp, Engineers India and Bharat Electronics.

An ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.

The success of the PSU ETF takes the disinvestment proceeds for the current fiscal to Rs 16,119 crore, a tad higher than budgeted Rs 16,027 crore.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Prabhu Express has trundled into town with a cargo of feel-good promises

    Railway minister Suresh Prabhu, punning on his own name, sought divine intervention more than once while delivering his maiden rail budget last Thursd

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Taslima Nasreen

The death of a liberal humanist

I first met Avijit Roy about 15 years ago. He ...

Purnendu Ghosh

Context is important in colour choices

Colours reflect power, optimism, warmth, emotion and balance. Colours are ...

Shona Adhikari

Art world celebrates two ‘new’ Cezannes

The focus moves once more to post-impressionist Paul Cezanne, who ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture