Second tranche of Bharat Bond ETF garners Rs 10,992 cr

The second tranche of Bharat Bond ETF (exchange traded fund) was over-subscribed 3.7 times, collecting Rs 10,992 crore. Bharat Bond ETF was launched on July 14 and closed on July 17. The base issue size was Rs 3,000 crore with a green-shoe option of Rs 12,000 crore, taking the total size to Rs 15,000 crore.

"The Bharat Bond NFO Tranche II has seen resounding success, receiving applications amounting to Rs 10,992 crore," Edelweiss Asset Management said in a statement.

With approximately 40,000 applications received and considering COVID-19 restrictions on accepting physical applications, Edelweiss Mutual Fund's Bharat Bond NFO witnessed wide retail participation with strong support from digital channels, it added.


Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said the overwhelming response and over-subscription of Bharat Bond ETF tranche II issue shows there is enough demand from investors for CPSE Bonds.

"This has helped participating CPSEs in raising long term resources that will aid their capex plans in the current financial year," he added.

The first tranche of Bharat Bond ETF had fetched about Rs 12,400 crore from its debut offer in December 2019.

The ETF currently invests only in 'AAA' rated bonds of public sector companies.