The government is considering
exercising greenshoe option worth Rs 4,000-6,000 crore in the
Central Public Sector Enterprises - Exchange Traded Fund (CPSE
ETF FF03) over the base issue size of Rs 8,000 crore.
CPSE ETF, which works like a mutual fund scheme, is an
instrument with which the government divests its stake in the
CPSEs without hitting the secondary market directly with
"The base issue size in the fourth round of CPSE ETF
issue is Rs 8,000 crore and this time a greenshoe option has
been kept which may be between Rs 4,000 crore and Rs 6,000
crore. However, the government is yet to decide on this,"
Reliance Nippon Life AMC Co-Chief Business Officer Saugata
Reliance Nippon Life AMC is the manager of the fourth
tranche of the CPSE ETF.
The target amount is the highest compared to the three
previous issues of the ETF.
In the new fund offer (NFO) in 2014, the issue size
was Rs 3,000 crore, the first Further Fund Offer (FFO1) size
was Rs 6,000 crore in January 2017 which was followed by
another FFO2 issue in March 2017 that raised just Rs 2,500
However, there were no over-allotment option due to
which the asset management company (AMC) had to refund the
Discount offer of 4.5 per cent has been decided in
this issue against 2.5 per cent in the previous issue of March
Out Rs 80,000 crore target from divestment in 2018-19,
the Centre has been able to achieve only Rs 15,247 crore,
latest data showed.
Chatterjee says he is hopeful of large scale
participation in the issue that opens for anchor investors on
November 27 and for retail investors on November 28 despite
liquidity crunch triggered by the IL&FS default.
He said in current issue, the composition has changed
where NTPC, SJVN and NBCC made entry while, Concor, EIL Ltd
and GAIL made exit.
The total number of stocks now stands at 11 compared
to 10 in the earlier three issues.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)