RMF's CPSE ETF gathers huge response from investors: Two lakh plus investors join the melee

The Reliance Mutual Fund (RMF) managed Central Public Sector Enterprises-Exchange Traded Fund (CPSE ETF) got an overwhelming response from its subscribers and the issue was oversubscribed. The fund got a bid of Rs 12,000 crore which was over two and the half times of the base issue of Rs 4,500 crore.

ETF is a marketable security that tracks a basket of assets such as stocks. The CPSE ETF is part of government's disinvestment plan aimed at narrowing Asia's widest fiscal deficit without reducing public spending. The fund received an application from over 2 lakh investors from across 300 cities and towns in India, from the anchor investors and non-anchor as well. 

The anchor investor submitted bids of Rs 6,000 crore. Non-anchor portion was largely dominated by retail investors and Provident Funds. Its investment included subscription from both domestic and foreign investors.  
 
The RMF CPSE ETF Further Fund Offer (FFO) planned to raise upto Rs 4,500 crore as base issue with an option to retain oversubscription. Morgan Stanley, Nomura, Kotak MF, SBI Bank, LIC amongst prominent domestic and foreign institutions that participated as anchor investors.