The spokesperson confirmed that there were redemptions on the first day of listing.
On the very first day of listing of Bharat 22 ETF which was managed by ICICI Prudential Mutual Fund, the fund house witnessed redemptions worth Rs 1,256 crore, sources in the industry told Moneycontrol.
When Moneycontrol contacted the fund house, the spokesperson confirmed that there were redemptions on the first day of listing but attributed the redemptions to profit-booking.
On November 28, the listing day, Bharat 22 ETF was listed at Rs 36.11 per unit, up 0.91 per cent over the issue price of Rs 35.97 on the BSE and closed at Rs 37.32 per unit.
The subscription of the fund was open for retail investors from November 15-17.
ICICI Prudential Mutual Fund managed Bharat 22 ETF’s new fund offer that had an initial issue size of over Rs 8,000 crore.
As much as 25 percent of total issue size, or Rs 2,000 crore, was reserved for anchor investors who put in bids worth about Rs 12,000 crore. LIC, Bank of India, SBI Pension Fund, EPFO and HDFC Ergo Insurance are among those who had put in bids.
Bharat 22 ETF comprises stocks of 22 blue chip public sector companies, including State Bank of India (SBI), Axis Bank, Larsen & Toubro (L&T), ITC, ONGC, Indian Oil Corporation, PFC, PGCIL, Nalco, BPCL, NTPC and Bank of Baroda.
The government raised Rs 14,500 crore through the Bharat-22 which received bids worth Rs 32,000 crore.
ETFs trade on the stock exchange platform like a single stock. ETFs follow a constant portfolio strategy and are linked to an established index, which is why these mutual funds have a lower management fee. Also, there is no exit load for units sold through the secondary market on the stock exchanges.However, brokerages charge a fee on transactions done through them. Redemption of ETF units can also be done directly with the fund.