CPSE ETF FFO subscribed 5 times, govt exercises green shoe option to raise Rs 11,500 crore

New Delhi: The Rs 10,000-crore sixth tranche of the CPSE ETF was subscribed over five times on Friday, with institutional and retail investors putting in bids worth Rs 40,000 crore till 5 pm.

"The government exercised the green shoe option taking the offer size to Rs 11,500 crore," tweeted Department of Investment and Public Asset Management (DIPAM) secretary, Atanu Chakraborty.

The base issue size of the FFO was Rs 8,000 crore with an option to retain oversubscription of another Rs 2,000 crore.

CPSE ETF runs a concentrated portfolio with a handful of stocks having weights of as high as 20 per cent on the underlying index. The portfolio is concentrated towards the energy and oil sector.

CPSE ETF, since its first launch in March 2014 and subsequent four tranches, has raised Rs 38,500 crore for the government and attracted 8.76 lakh investors.

The latest tranche opened for subscription by institutional investors on Thursday and received bids for over Rs 19,000 crore.

The CPSE ETF tracks shares of 11 central public sector enterprises (CPSEs) -- ONGC, NTPC, Coal India, IOC, Rural Electrification Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN.

Through the earlier five tranches of the CPSE ETF, the government has already raised Rs 38,500 crore -- Rs 3,000 crore from the first tranche in March 2014, Rs 6,000 crore in January 2017, Rs 2,500 crore from the third in March 2017, Rs 17,000 crore in November 2018 and Rs 10,000 crore in March 2019.

The government aims to raise record Rs 1.05 lakh crore through disinvestment in 2019-20, up from Rs 85,000 crore raised last fiscal.

(With inputs from PTI)