‘Bharat 22’ ETF to raise over ₹8,000 cr
The ‘Bharat 22’ Exchange Traded Fund (ETF), comprising 22 scrips of public sector undertakings, will hit the capital market next month to mop up over ₹8,000 crore for the government.
The new fund offer (NFO), managed by ICICI Prudential Mutual Fund, will open for anchor investors on November 14, while subscription for retail investors would begin on November 15 and continue till November 17.
An upfront discount of 3 per cent would be offered to all categories of investors, the fund house said.
“Approvals are in place. It is likely to open for retail subscription on November 15,” said a Finance Ministry official.
The ETF will help government meet its ambitious ₹72,500 crore disinvestment target for the current fiscal.
State-owned companies or PSUs that are part of the new ETF are ONGC, IOC, SBI, BPCL, Coal India and Nalco.
It also includes government’s strategic holding in Axis Bank, ITC and L&T held through SUUTI (Specified Undertaking of Unit Trust of India).
The other Central Public Sector Enterprises on the list are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL and NLC India.
Only three public sector banks — SBI, Indian Bank and Bank of Baroda — figure in the Bharat 22 index.
The government had raised about ₹8,500 crore through the two tranches of CPSE ETF last fiscal.
It had first launched an ETF in March 2014 and had garnered ₹3,000 crore. The first CPSE ETF consisted of scrips of 10 PSUs — ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, BEL, REC, Engineers India and Concor.