Bharat 22 ETF to raise 8,400 cr from new is­sue

Financial Chronicle - - GAME - FC BUREAU

AF­TER an­nounc­ing a Rs 466-rore Rites IPO this week, the gov­ern­ment is look­ing to raise Rs 8,400 crore through Bharat 22 ETF Fur­ther Fund Of­fer (FFO), which is be­ing man­aged by ICICI Pru­den­tial As­set Man­age­ment Com­pany.

Bharat 22 ETF FFO to raise Rs 6,000 crore, with a green-shoe op­tion to re­tain Rs 2,400 crore more, opens on June 19 and closes on June 22.

The ETF re­ceived good response last year when it was launched.

"The suc­cess of Bharat 22 ETF NFO…was over­sub­scribed by all in­vestor cat­e­gories, in­clud­ing retail in­vestors,” said Atanu Chakraborty, sec­re­tary Di­pam, min­istry of fi­nance. The FFO has set aside 25 per cent shares each for an­chor in­vestors, retail in­di­vid­ual in­vestors, re­tire­ment funds and qual­i­fied in­sti­tu­tional & non-in­sti­tu­tional in­vestors. “The div­i­dend yield of S&P BSE Bharat 22 In­dex, which is the un­der­ly­ing of the ICICI Pru­den­tial man­aged Bharat 22 ETF, is ap­prox­i­mately 2.6 per cent…In ad­di­tion, ICICI Pru­den­tial man­aged Bharat 22 ETF has an ex­pense ra­tio of less than 1 bps, which is among the low­est in the In­dian ETF uni­verse,” ICICI Pru­den­tial AMC said in a re­lease.

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