Bharat 22 Exchange Traded Fund (ETF), comprising 22 companies, made a modest debut on the bourses on Tuesday.
Bharat 22 Exchange Traded Fund (ETF), comprising 22 companies, made a modest debut on the bourses on Tuesday, surging nearly four percent over the issue price of Rs 35.97.
The ETF listed at Rs 36.30 per unit on BSE, up 0.92 percent over the issue price of Rs 35.97. In the intra-day trade, it had touched a high of Rs 37.38 and a low of Rs 36.30. It closed the session at Rs 37.33, up 3.78 percent.
On National Stock Exchange (NSE), the fund settled 3.7 percent higher at Rs 37.30. It had opened at Rs 36.11 and hit a high of Rs 37.40 in the intra-day trade.
Bharat 22 ETF, managed by ICICI Prudential Mutual Fund, is a unique blend of shares of key CPSEs, Public Sector Banks (PSBs) and also the government-owned shares in blue chip private companies like Larsen & Toubro (L&T), Axis Bank and ITC.
The government raised Rs 14,500 crore through Bharat 22 ETF, which opened for subscription for retail investors from November 15-17.
It had an initial issue size of Rs 8,000 crore.
Bharat 22 ETF saw bids of nearly Rs 32,000 crore coming in, with foreign portfolio investors bidding for one-third of the money. The portion reserved for retail investors was subscribed 1.45 times; retirement funds - 1.50 times and NIIs and QIBs - 7 times.
The ETF will help the government meet its ambitious Rs 72,500 crore disinvestment target for the ongoing financial year.
Bharat 22 Index has a diversified representation in six BSE sectors — industrials, finance, utilities, energy, fast- moving consumer goods and basic materials.
The state-owned companies or PSUs that are part of the new Bharat ETF 22 include ONGC, IOC, SBI, BPCL, Coal India and Nalco.Besides, Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL NLC India, Indian Bank and Bank of Baroda figure in the ETF.