*Discount is on the FFO 5 Reference Market Price. FFO 5 Reference Market Price is determined based on the average of full day volume weighted average price on the NSE during the Non Anchor Investor FFO 5 Period (inclusive of Non Anchor Investor FFO 5 Period open as well as close date) for each of the index constituents of the Nifty CPSE Index. Post closure of FFO 5, the Scheme will purchase the underlying Index constituents from GOI. Discount will be on shares to be offered by the Government of India. In the event an index constituent is purchased fully or partially from open market to meet Maximum Amount to be Raised during FFO 5, no discount will be offered on such purchase of index constituent from open market.
@VKMG sir, any chances of it can be give negative return on selling day? (i mean 10 days after when listing). so what we do in such case? what you think? it will go upside or it will give us 1-2% on listing day. kindly answer.
Very much possible. Most of the index constituents are PSU energy stocks and they are very volatile. If the overall market is down then we can wait otherwise sell it on allotment day. My take is that all the index shares are already highly beaten to death. Chances of going further down are less. But you never know. FYI I am going to apply in full force unless there is any bad news tomorrow. I am hoping for 4 - 6 % gain.
sir i am also applying in full force. after seen anchor subscription it is looking good. so can you tell me your final review? are you make any change to your decision?
Guys This is not like a normal IPO. This is more like an index fund. Allotment price (NAV) will be based on the price of the constituents PSU share prices. So if the price of these constituents shares goes down, then the fund price could go down as well. The 3% discount is not a discount to the allotment price. GoI gives 3% discount on the price of the PSU share which somewhat gets reflected to the allotment price. This time GoI may not sell all required constituents shares to the fund then in that case the AMC (Reliance Mutual Fund) will buy the constituents shares from the market. In that case, the 3% discount gets further diluted. My take is apply for it and then sell on allotment ASAP.
https://web.linkintime.co.in/Offer/Acceptance_Details.aspx