Bharat 22 ETF fund offer opens for investors on Oct 3; government eyes Rs 8,000 crore

The government will launch the fourth installment of Bharat 22 Exchange Traded Fund (ETF) on Thursday 3rd October 2019, which is expected to help the exchequer garner up to Rs 8,000 crore from investors.

It has a base size of ₹2,000 crore with the government retaining the right to keep an unspecified additional amount in case of oversubscription. The minimum investment amount for individuals is ₹5,000 and up to Rs 2 lakh while it is Rs 10 crore for retirement funds and qualified institutional buyers. Investor will get a discount of 3% over the issue price.

Bharat 22 ETF invests in the 22 companies that comprise the S&P BSE Bharat 22 index, 19 companies are in the public sector and three in the private sector.

“The offer is likely to have a base issue size of Rs 2,000 crore, with a greenshoe option to retain another Rs 6,000 crore, taking the total amount to Rs 8,000 crore,” a source privy to the development said.

The government has so far raised around Rs 35,900 crore through Bharat-22 ETF Rs 14,500 crore was garnered in November 2017, another Rs 8,400 crore was mopped up in June 2018 and Rs 13,000 crore in February this year.

Bharat 22 ETF Companies List / Stocks List

The central public sector enterprises that are part of the Bharat-22 ETF include Larsen & Toubro, ITC, State Bank of India, Axis Bank, NTPC, Power Grid Corporation, ONGC, GAIL, BPCL, Indian Oil Corp, Coal India, Nalco, Bharat Electronics, REC, NBCC, Bank of Baroda, Engineers India, NHPC, Power Finance Corp., Indian Bank, NLC India and SJVN.

These 22 stocks are invested across six sectors Construction, FMCG, Financial, Energy, Metals and Engineering.

Earlier this month, ICICI Prudential Mutual Fund, which manages the ETF, had filed the draft papers regarding the issue with capital markets regulator Sebi.

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