Govt raises Rs14,500 cr from Bharat 22 ETF as issue gets four times subscribed

The government on Monday said it has raised Rs14,500 crore from the Bharat 22 Exchange Traded Fund (ETF) after the Rs8,000 crore issue has been subscribed four times.

Government will retain part of oversubscribed portion to satisfy retail as well as pension funds.

The issue received the highest subscription for any new fund offer (NFO) in the history of Indian mutual fund industry, according to divestment secretary Neeraj Kumar Gupta.

The issue, managed by ICICI Prudential Mutual Fund, witnessed robust participation from foreign institutional investors, showing their confidence in Indian economy and its market.

"Bharat 22 ETF has a very balanced weight and has received a tremendous response," Gupta said.

Bharat 22 ETF had already attracted robust bids with the portion reserved for anchor investors getting subscribed six times to the tune of Rs 12,000 crore on the opening day on 14 November.

"During the three days reserved for non-anchor investors, we witnessed an over whelming response from all investors particularly retail segment. In due course, the ETF will be listed," Nimesh Shah, MD & CEO, ICICI Prudential AMC said in a statement.

The issue opened for non-anchor investors on 15 November and closed on 17 November.

The government had offered a discount of 3 per cent to all categories of investors, including anchor investors, retail individual investors, retirement funds, QIBs and non-institutional investors.

Bharat 22 ETF comprises 22 companies, or investments, from among central public sector enterprises (CPSEs) and public sector banks (PSBs) with 15 per cent participation by various participating sectors.

This ETF also includes the government's strategic holding in Axis Bank, ITC and L&T held through the Specified Undertaking of Unit Trust of India (SUUTI).

The ETF is part of the government's divestment target of Rs72,500 crore for the ongoing financial year.