Bharat 22 Exchange Traded Fund (ETF), comprising 22 companies has received robust response from anchor investors. The issue which opened for anchor investors on Tuesday attracted bids with the portion reserved for them getting subscribed six times to the tune of Rs 12,000 crore on the opening day.
ICICI Prudential Mutual Fund-managed Bharat 22 ETFs new fund offer (NFO) has a size of over Rs 8,000 crore.
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LIC, Bank of India, SBI Pension Fund, EPFO and HDFC Ergo Insurance among others have put in bids. As much as 25 per cent of total issue size, or Rs 2,000 crore, was reserved for anchor investors who put in bids worth about Rs 12,000 crore, ICICI Prudential MF said.
The NFO received subscriptions from across the board including mutual funds, foreign portfolio investors, insurance and retirement funds.
“We are delighted to see the overwhelming response received from anchor investors and aiding the Government of India’s disinvestment programme. Over the next three days, we look forward to active participation from Non Anchor Investor category who have the opportunity to participate in the India growth story, at a discounted price, through this attractive long term investment opportunity,” ICICI Prudential Mutual Fund MD and CEO Nimesh Shah said.
This ETF comprises leading companies from the private sector having an exposure of 39 per cent to the fund while the rest are public sector firms.
The fund comprises leading blue-chips such as ITC (through SUUTI) with 15.2 percent weightage, State Bank of India with 8.6 percent weightage, and Axis Bank (through SUUTI) with 7.7 percent weightage. Bank of Baroda, Bharat Electronics, Bharat Petroleum Corp, Coal India, Engineers India, Gail India, Indian Bank, Indian Oil Corp, Larsen & Toubro, National Aluminium Co, NBCC (India), NHPC, NLC India, NTPC, Oil & Natural Gas Corp, Power Finance Corp, Power Grid Corp of India, Rural Electrification Corp and SJVN are the other constituents of the fund.
The fund consists of stocks from six sectors such as capital goods, finance, oil & gas, power, FMCG and metal, metal products and mining.
A discount of 3 per cent has been offered to all categories of investors. ICICI Prudential Asset Management Company is the fund manager for the ETF