CPSE ETF to reopen for investors next month
Mar 23 2014 , New Delhi
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.