CPSE ETF receives bids worth Rs. 9,200 crore from institutional investors.

The seventh tranche of CPSE ETF received bids worth Rs. 9,200 crore recently from institutional investors in its anchor book.

The government has floated the fresh tranche of the CPSE ETF with the view of raising at least Rs. 10,000 crore. However, the government could exercise the greenshoe option to retain the excess bids over the base issue size.

The secretary of Department of Investment and Public Asset Management (Dipam) in a late evening tweet said that the anchor book -- which had base issue size of Rs. 3,000 crore -- had received strong interest from foreign and domestic institutional investors.

The portion allocated for anchor book was 30 per cent of the maximum amount to be raised.

The CPSE ETF is offering three per cent discount on issue price, which could give arbitrage opportunity to investors to make smart gains.

The non-anchor book -- where retail investors can place their bids -- will be open for subscription on Friday.

BS