Bharat 22 ETF’s Fourth Tranche Oversubscribed By 12 Times

Bharat 22 ETF’s Fourth Tranche Oversubscribed By 12 Times

Bharat 22 ETF’s Fourth Tranche Subscription Details

The Fourth Tranche of Bharat-22 ETF opened for subscription on 3rd October for anchor investors and on 4th October for non-anchor investors. Bharat-22 ETF’s Fourth Tranche FFO 2 was oversubscribed by 12 times on the last day of bidding. On Friday, the scheme earned bids worth of Rs 23,500 crore which is 12 times to the base issue size of Rs 2,000 crore. As of the source, the government will retain Rs 4,368 crore from the offer.

ICICI Prudential Mutual Fund managed Bharat 22-ETF scheme. A source said that investors are interested to invest in Public Sector Undertaking (PSU) due to their low valuations, hopes of disinvestment and good corporate governance. He also added that the government offers a 3 percent discount on the govt stake. Moreover, a low expense ratio of 1 paisa also attracts investors. 

As of the source, the Bharat 22 ETF’s fourth tranche has a strong portfolio of 22 stocks. SBI, Axis, L&T, ITC, and NTPC are the top five stocks of Bharat 22 ETF. These holdings have 56 percent of the portfolio in Bharat 22.

According to the reports, on Thursday, the scheme was subscribed 27 times by anchor investors. The net proceeds of the scheme will help the govt to reach its disinvestment target. It tries to reach about Rs 1.05 lakh crore for the current financial year.

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