Government think-tank NITI Aayog is preparing a fresh cabinet note recommending closure of 7 more sick CPSEs as part of an exercise to tackle mounting losses incurred by these entities.
The government will begin tomorrow 5 percent stake sale in state-owned aerospace and defence company Bharat Electronics Ltd to raise about Rs 1,600 crore.
A more diversified CPSE ETF should provide plenty of wealth creation and value unlocking opportunities for retail investors, experts say.
Sundeep Sikka, ED & CEO, Reliance Nippon Life Asset Management said it is a starting of a new trend where retail investors who have never been coming to ETF until now have started showing interest.
"Units issued under Further Fund Offer (FFO) of Reliance Mutual Fund CPSE ETF are available for trading on the exchange with effect from January 31, 2017," stock exchanges said in similarly worded circulars.
Together with the ETF proceeds, government has garnered Rs 30,000 crore from PSU disinvestment this fiscal. It will sell 10 percent stake in state-run miner MOIL tomorrow to garner Rs 480 crore.
The second tranche sale of government's exchange traded fund (ETF) of top 10 state-owned companies saw bids worth Rs 12,000 crore from investors, which is twice the amount sought to be raised.
Reliance Mutual Fund CPSE ETF issue, which was opened for Anchor investors today, got oversubscribed by over 4 times, raising Rs 6,000 crore, by anchor investors.
Reliance Mutual Fund will launch second tranche of CPSE ETF tomorrow and it is open for subscription till January 20, 2017. Watch the interview of Feroze Azeez, Deputy CEO at Anand Rathi Private Wealth and Hemant Rustagi of Wiseinvest Advisors in which they shared their views of the CPSE ETF and whether one should be applying for that.
A good dividend yield coupled with a five percent upfront discount makes CPSE ETF attractive for investors, said Sunil Singhania, CIO - Equity Investments at Reliance Mutual Fund. The government plans to raise Rs 6,000 crore from the follow-on CPSE ETF fund offer which will open for subscription on January 17.
To facilitate acceptance of subscriptions for Further Fund Offer of CPSE ETFs, BSE has introduced an online mechanism for investment and subscription of exchange-traded fund on its Internet-based book building system (iBBS) platform.
National Stock Exchange (NSE) would conduct a mock session for new 'e-ETF' on e-IPO platform on January 13 and January 16-17 in order to familiarise with the new facility.
Retail investors with slightly higher risk-appetite can consider investing in the offer as the track record of the ETF has been good and it holds promise of good returns in future.
Reliance Mutual Fund, an arm of Reliance Capital will launch a further fund offer of CPSE ETF or Central Public Sector Enterprises Exchange Traded Fund on January 17 and the offer will remain open until January 20.
Market Expert Ambareesh Baliga discusses the salient features of the CPSE ETFs, their lucrativeness and what they comprise of.
The government will take a decision this month on a follow on offer for its CPSE ETF, managed by Reliance Mutual Fund, which will fetch about Rs 5,000 crore to the exchequer.
The Finance Ministry is planning to launch a new Exchange Traded Fund (ETF) as an additional mechanism to monetise government's stake in listed PSUs and other companies
Goldman Sachs Mutual Fund announces change in benchmark Index under its schemes, with effect from November 09, 2015.
The Department of Divestment is batting strongly to tighten the market surveillance on the day of big offer for sale (OFS) especially after the Coal India case.
Govt plans to divest 5 percent each in REC and PFC in FY15 and hopes to garner around Rs 3,000-3,400 crore via stake sale.