CPSE ETF: Run up to the Issue

( This post tries to bring out consolidated opinion,  Review, Analysis, Note/ reports and recommendation of brokerages , Analysts, Business New papers, Management views, information on Anchor investors etc on CPSE ETF FFO and shall be updated continuously till the closure of the issue The information collated from various sources and reports in public domain can  help investors to decide whether they should subscribe to CPSE ETF issue. )

CPSE ETF Further Fund Offer: A Review

Closing Day: 

CPSE ETF on the final day, saw bids worth Rs. 12,000 crore from investors, which is  twice the amount sought to be raised.
Anchor investors, for whom the bids had  opened on January 17 and Rs. 1,800 crore was reserved, had put in bids for over Rs. 6,000 crore. Another Rs. 6,000 crore worth bids poured in from Qualified institutional buyers and retail investors between January 18-20. The CPSE ETF saw all round participation from investors, with retail buyers who were offered a 5 per cent discount, putting in bids for over Rs. 1,000 crore.

Anchor Investors:  

Anchor investors of  Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF) have bid for Rs 6,000 crore which amount to four times their reserved quota.Some of the anchor investors include State Bank of India, Axis Bank, Birla Mutual Fund, Nomura, Morgan Stanley and LIC .

Views of Brokerages, Analysts,  Business New Papers, Management views  
Arihant Capital Markets: “Investors with a slightly high 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. Additionally listing gains are expected to occur as there is quite a roar about the issue in the market amongst retail investors given its previous track record”   

India Infoline: “The underlying shares—the stocks that form the CPSE ETF—are trading at a much lower Price to Earnings (PE) ratio and have higher dividend yields, which makes the offer a compelling one. However, since the government policies will have a bearing on the entire basket of the CPSE Index and as the portfolio is heavily skewed towards energy sector, any unfavorable movement in the prices of crude oil, natural gas and coal will negatively impact the returns.Considering all the factors, the CPSE ETF would be suitable for investors with a long term horizon.”

Vidya Bala: Head-Mutual Fund Research; FundsIndia.com : “Since this ETF is almost like a theme fund, one should not expose more than 10-15 per cent of their equity portfolio in this ETF.”

Reliance MF : ” CPSE ETF has the potential to beat NIFTY in  next 1-3 years. Click Here   

Capital Mind: “

Not Worth The Arb Risk, and Boring Portfolio”

EPFO decides to invest Rs 2,800 crore in CPSE ETF FFO. Read the complete report  http://bit.ly/2jDFxjE 

Bloomberg: “Modi-Backed ETF Hooks Investors” Click Here 

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