Further fund offer of Bharat-22 ETF attracts Rs14,000-cr investment

The further fund offer (FFO) of Bharat 22 Exchange Traded Fund (ETF) has been a resounding success with the FFO attracting applications aggregating nearly Rs14,000 crore, about 2.3 times the size of its initial issue.

The issue saw wide participation from the foreign institutional investor (FIIs) under the Anchor and QIB category. The government of India reserves the right to retain the oversubscribed portion to the extent of Rs2,400 crore.
The issue was opened on 19 June 2018 for the Anchor Investors and from 20 to 22 June 2018 for the non-anchor investors.
?The initial FFO size was 6,000 crore and thus the issue has been subscribed by more than 2.3 times the initial size.
?With more than one lakh retail applications, the FFO of BHARAT 22 ETF witnessed wide retail participation. In the Anchor Investor category the offering was subscribed 3.4 times raising more than Rs5,000 crore. For the non-anchor investor, an amount of more than Rs9,000 crore has been subscribed. Despite the challenging market in the year 2018 the ETF has garnered very strong subscription with encouraging response from FIIs (who have subscribed to the extent of Rs7,500 crore).
The Further Fund Offer (FFO) of Bharat 22 Exchange Traded Fund (ETF), managed through ICICI Prudential Fund was originally launched by the Government of India in pursuance of its disinvestment policy targeting an initial amount of Rs6,000 crore.
?The Bharat 22 Exchange Traded Fund (ETF) comprises top performing 16 CPSEs covering six sectors, three public sector banks and three private companies where SUUTI has stakes.
The Bharat 22 ETF was initially launched by the Government in financial year 2017-18. This is the first FFO of the said ETF.
?The units of the scheme will be allotted to various categories of investors, including Anchor Investors, Retail Institutional Investors, Retirement Funds, Qualified Institutional Buyers (QIBs) and Non Institutional Investors.