This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at [email protected]
Reliance Mutual Fund has made the allotment of units under its further fund offer (FFO) of CPSE Exchange Traded Fund (ETF) today and there is a good news for the retail investors. Firstly, full allotment has been made to each and every successful retail applicant applying up to Rs. 2 lakh worth of these units. Though Reliance Mutual Fund has not officially announced the retail subscription numbers for this FFO, it can be safely assumed that retail subscription was less than Rs. 4,200 crore as 100% allotment has been made to all the retail applicants.
Secondly, against an application of Rs. 2 lakh, Reliance MF has allotted 7,932 units of CPSE ETF and at today’s closing price of Rs. 27.55, your investment would be valued at Rs. 2,18,526.60 i.e. an immediate gain of 9.26%. This 9.26% return includes 5% discount offered by the government to the investors of this fund offer.
You might also get some small amount credited to your bank account as refund due to allotment of FFO units in whole numbers. Balance amount on account of fractional FFO units will be refunded to your bank account linked to your demat account.
Moreover, as these units have been allotted in less than 10 working days and well before February 1, the big day on which Budget 2017 would be presented in the parliament, it has given you an opportunity to sell your units well before this big event and completely avoid the expected budget day volatility due to which some investors were reluctant to invest in this FFO.
However, if the government decides to sell its stake in some of these companies, either partially or fully, or make the managements of these companies more accountable towards their shareholders, I think there is a great scope of capital appreciation with this ETF. So, I would advise long-term investors to hold on to their investments for at least a couple of years more and reap the benefits of a rebound in the fortunes of these companies.
If you had also applied for these CPSE ETF units in this FFO, but are yet to get any allotment intimation on your mobile or e-mail, you can contact the Registrar, Karvy Computershare on 1800 3454 001 or Reliance Mutual Fund on 1800 300 11111. If I get any link to check the allotment status by entering one’s PAN number or application number or DP ID – Client ID, I’ll paste that link here in this post itself.
If you have any more info about its allotment or any query regarding CPSE ETF or this FFO, please share it here so that more and more investors get benefit out of it.
I applied for reliance CPSE ETF FF 2 for Rs 2,00,000/- but units are not credited to my account till date MY PAN NO: IS BJJPM 7255 G MY DEMAT ACCOUNT IS WITH KARVY CLIENT ID: 20885161 , MAY ANY BODY INFORM ME TO WHOM I HAVE TO CONTACT FOR ALLOTMENT HOWEVER RS 53000/- IS CREDITED TO MY ACCOUNT & RELIANCE IS TELLING THAT ALLOTMENT IS DONE TO YOU FOR RS 147000/- MAY PL LOOK INTO MATTER
NEERAJA MAHESHWARI
I applied for reliance CPSE ETF FF 2 for Rs 2,00,000/- but units are not credited to my account till date MY PAN NO: IS BJJPM 7255 G MY DEMAT ACCOUNT IS WITH KARVY CLIENT ID: 20885161 , MAY ANY BODY INFORM ME TO WHOM I HAVE TO CONTACT FOR ALLOTMENT HOWEVER RS 53000/- IS CREDITED TO MY ACCOUNT & RELIANCE IS TELLING THAT ALLOTMENT IS DONE TO YOU FOR RS 147000/- MAY PL LOOK INTO MATTER
NEERAJA MAHESHWARI
It seems CPSE ETF FFO 2 units have been allotted. For an application of Rs. 2 lakhs, 5503 units @ Rs. 26.8504 have been allotted. Listing should happen either tomorrow or day after.
Thanks Shiv!!
I can see 5120 units are allocated. However, not sure about the allocation rate but I can see in my ICICI bank a/c mentioned Rs.28.29.
Is it allocation rate or the price changed after allocation?
Regards
Manjesh
Ref posting of PP on 30/ 1/2017 at 09.10 am.
CPSE ETF 26.54-5% = 25.21 .
can any one explain how 26.54 has been arrived at
Sir,
I have applied for CPSE ETF FFO2 on 17.03.2017, I have been tried to tracking regarding allotment. Also the amount is deducted from my bank account, Please help me how to check this and what’s the target it may achieve.
Sir,
If I buy cpse etf 2 ffo starting from March 15th 2017 directly from Reliance mutual fund website as against buying it from my broker icicidirect. Com whether I will save money on brokerage and will be given more units..
Plz clarify of advantages of buying this directly from reliance mf as against my existing icicidirect. Com
In above reference following agencies remained defaulter-
Responsible Agencies for Error
1. Karvy Computershare Ltd (The Registrar)
2. Reliance Mutual fund (The Fund Manager), Local office as well Head office.
3. Standard Chartered Bank (The Banker of issue), Jodhpur
(IFSC Code :SCBL0036097)
My fund is still neither refunded nor units alloted.
I am calling on regularly to helpline number of the Registrar, Karvy Computershare on 1800 3454 001 or Reliance Mutual Fund on 1800 300 11111, but no resolution till now.
I will remain very much thankfull for your kind reference.
Regards
Sub:- Regarding CPSE ETF Series 2 non Allotment
CPSE ETF FFO Application number 652212 and 652213.
Investors details:-
1. Rajesh Kumar Laddha
PAN-AAOPL3628H
DP:-1202990002841998
Application number-652213
Cheque Number-440059/SBI,
Dated 18/01/2017, Amount-2.0 Lakh,
Category- Retail.
Acknowledgement slip stamp/Submission detail: RMF JOD 18Jan17 14:01 C22131
2. Vinita Laddha
W/O- Rajesh Kumar Laddha
PAN-ACQPL1742C
DP:-1202990006305291
Application number-652212
Cheque Number-050839/Axis Bank,
Dated 18/01/2017,
Amount-2.0 Lakh,
Category-Retail.
Acknowledgement slip stamp/Submission detail: RMF JOD 18Jan17 14:01 C22130
In this reference to my complaint to Reliance Mutual Fund customer care (Comp. ref.- 45637456) and email ID also, I hereby want to describe that it is not an individual problem. A bunch of eighteen applications which were sent to Standard Chartered Bank (the Banker of issue), Jodhpur branch (on 19/01/17) remained unprocessed because the banker forgot to place the cheques for clearing. In addition to this I called Reliance Mutual, Jodhpur office on regular basis from 23/01/17 onward on all working day and informed them that cheques of my both applications are not processed. They (Mr. Sunil Bishnoi) always said that there are so many cheques and being processed sequentially.If they have been taken the matter seriously and have asked the banker before 30/01/17, the banker may have been resolved the matter before declaration of allotment. After declaration the allotment on 30/01/17, I visited personally on 31/01/17 to the local offices of Reliance Mutual Fund (Mr. Danish Ali Sayed, cluster manager and Mr. Shiv Shankar Soni, relationship manager)/ Karvy Computershare Ltd (Mr. Rajendra/ Rekha ji) and Standard Chartered Bank (Mr. Nishant Dixit), Jodhpur, Rajasthan and get all relevant details. Onward the Banker searched and placed the cheques for clearing and amount 2,00,000/- INR (Two Lakh rupees) debited from respective bank account on 01/02/17, which detailed statement I have already sent to you when asked by your customer care executive.
I am also attaching copy of my complaint and its response from [email protected], Dated 25/01/2017 and 27/01/2017 which clearly indicate that fund house is asking the details which I already given in my email on 25/01/2017, and had made no efforts to check their record which they having from 20/01/2017 i.e. bidding record summary with them and Registrar of the issue i.e.- Karvy Computershare Ltd (The Registrar) in this reference.
Which shows that I informed well in advance to concerned authorities but nobody got alert and responded seriously.
198 units are allocated to me in cpse etf and the current value of it is showing only Rs. 1980. @ 10 per unit. I had invested 5000 rs. does that mean i m at loss!? I am investing in such scheme for very first time. Please guide
Hello Mrs. Sankalp,
It is incorrectly showing loss in your account. Currently, it is trading at Rs. 27.61, a profit of 9.50%.
okay.. thanks a lot.. just read my allotment advise in which the allotment price is clearly mentioned as 25.2141. Some issue with IIFL MF App, I guess!!
Yeah, must be. Thanks!