We are at the fag end of the current financial year and as always, the government is doing everything it can do to meet its revised target getquote icicidirect trading equity stock quote garnering disinvestment proceeds. It had set a highly ambitious target of raising Rs. 16,027 crore last month in February 2014. I hope it doesn’t fail in its efforts to meet even this revised target.
NSE today launched CPSE Index, in which CPSE stands for central public sector enterprises. As the name suggests, this index comprises of some of the big public sector enterprises and here you have the list of those companies. CPSE Index has been launched for a specific purpose and the purpose is to facilitate Government of India’s initiative to sell its stake in some of these CPSEs. In fact, the finance ministry wants to raise an additional Rs. 3,000 crore for its disinvestment programme this financial year and it will be using this CPSE ETF to garner its targeted amount. CPSE Index has base date of 1st January, 2009 and base value of 1,000. As mentioned above, this index got launched today and stood at 1,898.
10 by the end of today’s trading hours. The weights of its constituents will be re-aligned every quarter effective 2nd Monday of February, May, August and November every year. This ETF has been launched by Goldman Sachs Asset Management Company Limited and is named as Goldman Sachs CPSE ETF. It is also known as the PSU ETF.
As mentioned above, does it make any difference to me as a retail investor, this is the first time that Goldman Sachs has been involved with such a big scheme and getquote icicidirect trading equity stock quote can expect some natural inefficiencies. Though they are not legally bound to do the same, loyalty units will not be allotted if these units are bought from the secondary markets subsequently. I can see the units in demat balance, this ETF is highly tilted towards the energy sector. New Fund Offers, i couldn’t find anything there.
The government of India has authorised only Goldman Sachs to launch this ETF. I would call it GS CPSE ETF or just CPSE ETF for the rest of this post. 2,150 crore to meet its targeted amount. Out of the proceeds collected during the NFO period, this scheme intends to purchase the CPSE shares, as represented in the constituent companies of the CPSE Index, in similar composition and weightages as they appear in the CPSE Index. The President of India, represented through different departments and ministries, will sell the shares at a discounted rate to the scheme and the mutual fund will in turn create and allot units of the scheme to its investors. Subsequently, after the closing of the NFO, the units will get listed on the stock exchanges in the form of an ETF tracking the CPSE Index.
The scheme intends to generate returns that closely correspond to the total returns earned by the securities as represented by the CPSE Index. However, the performance of the scheme may differ from that of the CPSE Index due to tracking error and also due to scheme expenses. For the non-anchor investors, this fund will open for subscription from tomorrow i. March 19th and will run for three days to close on March 21st. New Fund Offers, or popularly known as NFOs, normally get launched at Rs.
Principal approval of NSE and BSE for listing the units of this scheme and the listing would be carried out by the fund house on or before 11th April, but I still mean it has the potential to give such returns if the government policies move in the right direction. As these units are yet to get admitted for trading — this decision varies from individual to individual. As a human getquote icicidirect what is the best option strategy for nifty equity stock quote — decisive government can have a dramatic effect on the sentiment driving the stock prices of these CPSEs. In period applicable for those investors who don’t avail any tax benefit. Regarding NAV vs closing price? Goldman Sachs CPSE ETF to get listed on the exchanges on Friday, there is no retail quota.
10 per unit as their NAV. This will not be the case with this scheme. During the NFO, each unit of this scheme will have a face value of Rs. 10 and will be issued at a premium, equal to the difference between the face value and the allotment price.
CPSE ETF for buying the underlying CPSE Index shares. Going by the CPSE Index’ closing value of 1898. 10 today, the allotment price of this scheme should get fixed at around Rs. 18 per unit once the allotment gets done. So, if you decide to invest Rs. 80 lakh in this scheme, you will be getting approximately 10,000 units of GS CPSE ETF.
CPSE Index shares will be offered to CPSE ETF by the government of India. Record date will be determined as the date falling exactly one year from the date of allotment. Loyalty units would be credited to the demat account of the eligible investors within 30 days from the record date. Non-retail investors will not be offered loyalty units under this scheme. Based on the dividend paying pattern of these CPSEs, the dividend yield works out to be in the range of 3. Though I do not give much weightage to dividend yield for my personal investments, I think a healthy dividend yield of 3. CPSE Index is ruling at around 10.
E multiple of approximately 18. This makes CPSE ETF quite attractive from valuations point of view. The scheme seeks to collect a minimum target amount of Rs. 100 Crores during the NFO Period.