This FFO3 is part of the Government of India’s overall disinvestment program, announced earlier by the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, using the ETF route.
RMF proposes to raise upto Rs 8,000 crore (US$ 1.12 Billion) in FFO3 as “Initial Amount” plus an “Additional Amount” (if any) based on instructions of The GOI.
“The FFO3 in the CPSE ETF is part of the government’s larger disinvestment program that was announced earlier by the Ministry of Finance. We feel confident that the timing of the issue will help investors benefit from their exposure in a diversified basket like CPSE ETF that includes a list of distinguished PSUs who are leaders in their respective sectors,” says Sundeep Sikka, ED and CEO, Reliance Nippon Life AMC.
“We are delighted to announce the CPSE ETF FFO3. It offers a compelling opportunity for investors, especially retail and retirement funds, to invest in the India growth story at an attractive valuation, low expense and embedded discounts,” says Sikka.
The FFO3 is open for all categories of investors including anchor Investors, retail investors, retirement funds, QIBs, non-institutional investors and Foreign Portfolio Investor (FPIs).
As part of the FFO3, an upfront discount of 4.5 per cent is being offered to all categories of investors.
The dividend yield of Nifty CPSE Index is approx. 5.25 per cent as of October 31, further adding to the overall merit of investing in this ETF. In addition, CPSE ETF has a very low expense ratio of 0.95 bps.
FFO3 to open and close for anchor investors on November 27 and for non-anchor investors on November 28 and close on November 30.
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