Bharat 22 ETF subscribed 2.6 times, investors put in bids worth Rs 15,436 crore

The Further Fund Offer (FFO) of BHARAT 22 ETF was subscribed approximately 2.57 times the initial issue size. It received applications aggregating Rs 15,436 crore in four day FFO period. The FFO is a part of the Government of India’s divestment programme.

The Anchor investor category is subscribed 3.44 times raising approx. Rs 5,163 crore. Non-anchor investors raised approx. Rs 10,273 crore.

The fund is managed by ICICI Prudential Mutual Fund. The FFO attracted approximately 1.2 lakh applications, oversubscribed across all the categories. The government had a target to mop up Rs 6,000 crore through the second tranche of Bharat 22 ETF.


"We are very pleased with the tremendous response during the Further Fund Offer of BHARAT 22 ETF managed by ICICI Prudential AMC; the offer has witnessed wide participation”, says Atanu Chakraborty, Secretary, Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, Government of India.

“The FFO attracted wide participation across all investor segments, especially from retail investors which is very encouraging. We believe investing in this ETF is one of the ways of investing into India’s growth story,” says Nimesh Shah, MD & CEO, ICICI Prudential AMC. “The ETF is available at lower valuations along with relatively high dividend yield,” he adds.

The state-owned companies that are part of the ETF include ONGC, IOC, SBI, BPCL, Coal India and Nalco.

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 feature in the Bharat 22 index.

The government plans to raise Rs 80,000 crore in the current fiscal from disinvestment, lower than over Rs 1 lakh crore raised last year.