Reliance Mutual Fund, an arm of Reliance Capital, will launch a further fund offer of Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF) on January 17. The offer will remain open until January 20.
The FFO will be open for all category of investors including anchor investors, retail investors, retirement funds, QIBs, non-institutional investors and foreign portfolio investors or FPIs.
The FFO will open for anchor investors on January 17, and for other category of investors from January 18-20.
Reliance Mutual Fund proposes to raise up to Rs 4,500 crore in the FFO of CPSE ETF with an option to retain oversubscription up to Rs 1,500 crore. As part of FFO, an upfront discount of 5 percent will be offered to all category of investors.
The fund house had launched the first tranche of the scheme in March 2014, which had garnered Rs 4,363 crore during the NFO.
Reliance MF's further fund offer of is a part of the government's overall disinvestment program, announced earlier by the Department of Investment and Public Asset Management, Ministry of Finance (DIPAM).
CPSE ETF, which functions like a mutual fund scheme, comprises scrips of 10 PSUs -- ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, Bharat Electronics, REC, Engineers India and Container Corporation of India.
“We feel confident that the timing of the issue will help investors benefit from their exposure in a diversified basket like CPSE ETF that includes a list of distinguished PSUs that have performed exceedingly well in their respective sectors,” Manish Singh, Joint Secretary, DIPAM.
DIPAM has appointed ICICI Securities as the advisor for the FFO.
(With inputs from PTI)