Bharat 22 ETF opens today, targets ₹8K cr

MUMBAI: The government will launch the ‘Bharat 22’ exchange traded fund (ETF) managed by ICICI Prudential Mutual Fund, on Tuesday, targeting an initial amount of about ₹8,000 crore. The new fund offer (NFO) will be open for subscription till November 17 and a discount of 3% is being offered to investors.

“While our initial issue size for Bharat 22 ETF is ₹8,000 crore, we can also consider going beyond looking at the response in the market,” said Anuradha Thakur, joint secretary, Department of Investment & Public Asset Management (DIPAM) in the ministry of finance.

The ETF is a part of the government’s overall disinvestment programme, and mirrors the S&P BSE Bharat 22 Index which comprises of select companies from the CPSE universe, stakes held under the Specified Undertaking of the Unit Trust of India (SUUTI) and state-run banks.

“While 39% of the index is in private sector companies, 61% is in government companies, which have all been handpicked by us,” Nimesh Shah, MD and CEO, ICICI Prudential Asset Management Company Ltd, said at the press conference.

The S&P BSE Bharat 22 Index has diversified representation in six BSE sectors, including industrials, finance, utilities, energy, FMCG and basic materials.