Bharat Bond ETF issued by Edelweiss Mutual Fund was listed at Rs 1,000 on the National Stock Exchange (NSE). At 10 am, it was trading at one rupee premium to the offer price.
Edelweiss AMC raised Rs 12,395 crore through the first-ever corporate bond ETF. Edelweiss Mutual Fund-managed Bharat Bond ETF opened for subscription from December 12 to December 20.
The issue was oversubscribed 1.8 times and garnered Rs 12,000 crore. The base size of the issue was Rs 7,000 crore.
The three-year category received applications for Rs 6,982 crore and the 10-year category received Rs 5,413 crore.
Overall, the ETF saw 55,000 investors participating in the NFO.
At the listing ceremony, Anuradha Thakur, Joint Secretary, Department of Investment and Public Asset Management (DIPAM) said, “We hope Bharat Bond ETF will open up additional avenues for CPSEs to raise funds, through a new class of investors like retail and foreign portfolios investors.”
The exchange-traded fund will invest only in AAA-rated bonds of public sector companies for two fixed-maturity periods of three years and 10 years.
Bharat Bond Funds of Funds (FOF) was also launched for investors who do not have demat accounts.
Going forward, Edelweiss Mutual Fund plans reissuance of ETFs with three-year and 10 year target maturities, and issuance of products with other tenors.
Rashesh Shah, Chairman and Chief Executive Officer, Edelweiss Mutual Fund said ,”Debt ETFs will create a new ecosystem of market-makers, bringing together high-quality borrowers and investors to the corporate bond market.”