CPSE ETF NFO Update 04th April
- The CPSE ETF offering was successful and oversubscribed as applications were for Rs 4,400 crore when the offer was limited to Rs 3,000 cr.
- The ETF units were allocated to subscribers at a price of Rs 17.45.
- NFO investors got allotment by a formula – investor who applied for more than 5000 units got a guaranteed allotment worth 5,000 units. The balance units were allotted to all applicants on a proportionate basis, as per reports.
- Retail investors who applied for Rs 2 lakhs worth got refunded about Rs 45,700 and got about 8,800 units.
- Trading of this ETF started on the exchange today and it appreciated by 10.9%.
- So this Retail investor has gained Rs 16,700 from this NFO purchase already. This is a great start for investors !!
- As mentioned in my initial report, investors need to hold on to this ETF for 1 year to gain the Loyalty units. In addition, holding for over one year allows for dividend benefits as well as taxation gains.
Good luck and happy investing.
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- Report Date 21-Mar-2014
- NFO Offer Period – 19-21st March 2014
- Mutual Fund Nature – Large Cap PSUs ETF
- Will launch at Rs 10 NAV
- Advice: Buy
Here is a note on the Central Public Sector Enterprises – Exchange Traded Scheme – NFO.
Offer Description
- Goldman Sachs is launching the CPSE ETF through a New Fund Offer (NFO)
- CPSE Index will facilitate GoI’s (Govt of India) initiative to dis-invest some of its stake in CPSEs through the ETF route.
- Ten leading PSUs’ will be included in this ETF at offer stage
- Typically these are fairly well known high dividend, low capital gains but asset rich companies
- Already in the first 3 days of Offer, the fund has collected Rs 2400 crore of the Rs 3000 cr targets.
- Analysis of these ten PSUs as part of this ETF
CPSE analysis, JainMatrix Investments
Note here: 1) Coal India price is taken from…
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