The government is now ready to launch a FFO or “Further Fund Offer” exchange-traded fund (ETF) based on the central public sector enterprises (CPSE) index. This is going to be the sale of the second tranche of central public sector enterprise (CPSE) exchange traded fund (ETF) by raising an offer to deploy Rs.6, 000 crores (base size is Rs. 4500 crore and Rs. 1500 crore for green shoe option) on 17 January, 2017 which is managed by Reliance Mutual Fund. Anchor investors reserve is 30% and rest is offered to other categories. The offer opens for Anchor Investors for only a day on 17th January 2017 while for other categories including retails it’s open on 18th January 2017 and end on 20th January 2017.
CPSE ETF is Central Public Sector Enterprise (CPSE) Exchange Traded Fund (ETF) which functions in mutual fund scheme, comprises the scrip of 10 PSUs — ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, Bharat Electronics, REC, Engineers India and Container Corporation of India. [Read more…]