Bharat-22 ETF: Anchor Investors Put In Rs 13,500-cr Bids

Bharat-22 ETF: Anchor Investors Put In Rs 13,500-cr Bids

Bharat-22 ETF Scheme Received Rs 13,500 cr bids from Anchor Investors

The government has launched the fourth tranche of the Bharat-22 ETF scheme for a subscription on 3rd October for the anchor investors. It is an open-ended exchange-traded fund investing in S&P Bharat 22 Index. The scheme received an enormous response from institutional players with the portion reserved for anchor investors earning bids worth Rs 13,500 crore. It indicates that the received bids around 27 times the actual size of the issue.

On Thursday, the ETF issue received bids from mutual funds, foreign portfolio investors, and insurance funds. According to the reports, Bharat-22 ETF FFO 2 opened for subscription on today on 4th October. It exists for retail investors and other institutional investors. As of the source, retail and other institutional lenders would get a 3 percent discount over the issue price.

ICICI Prudential Mutual Fund manages the Bharat-22 ETF scheme. According to the reports, through this proposal, the government aims to raise a primary expense of Rs 2,000 crore with a green-shoe option to retain over-subscription.

Still, the government did not make any decision on the amount that will retail from the oversubscription. Although, a source said that the central state may retain Rs 6000 crore as an over-subscription amount which will take the total size of Rs 8000 crore.

According to the source, the scheme held for anchor investors of 25 percent or Rs 500 crores of the total issue. But, it received Rs 13,569 crores from anchor investors. That holds 27 times to actual size of the issue allocated to anchor investors.

ICICI Officials Opinion On Bharat-22 ETF

The Officials of ICICI Prudential  MF said that they are happy to observe the continues response from anchor investors. Now, they are eagerly waiting for the second portion result. It offers a discount price to non-anchor investors.

In the opinion of the source, the government has raised about Rs 35,900 crore through the offer. As of the data, Rs 14,500 crore was collected in November 2017. In June 2018 and February 2019, the government earned Rs 8, 400 and Rs 13,000 respectively. 

According to the reports, the funds of the issue will help the government to meet its disinvestment target of Rs 1.05 lakh crore for the current fiscal year. 

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