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Last Updated : Oct 28, 2017 11:37 AM IST | Source:

ICICI Prudential AMC to launch Bharat 22 ETF on Nov 15; offer to close Nov 17

ICICI Prudential AMC, which will manage the ETF, has proposed to raise an initial amount of Rs 8,000 crores

Himadri Buch @himadribuch

ICICI Prudential AMC will launch Bharat 22 ETF, an open-ended exchange traded fund on November 15 and subscription will close on November 17, the fund house said in a release.

The scheme will invest in the constituents of S&P BSE Bharat 22 Index. The Bharat 22 ETF initiative is a part of Government of India's overall disinvestment program, announced earlier by the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.

ICICI Prudential AMC has proposed to raise an initial amount of Rs 8,000 crores plus additional (if any).


The government had in August announced the new Bharat 22 exchange-traded fund, comprising shares of 22 public sector companies.

Bharat 22, which is managed by ICICI Prudential AMC, comprises shares of companies from six sectors--basic materials, energy, finance, fast moving consumer goods, industries and utilities--and includes state-owned companies like Oil and Natural Gas Corp, Coal India, NTPC, State Bank of India, NTPC, and private companies ITC and Larsen & Toubro.

The NFO for anchor investors will be on November 14, 2017. In terms of allotment percentage, anchor investors will be allotted 25 percent, and retail individual investors, retirement funds and QIB (Qualified Institutional Buyers) and NII (Non Institutional Investors) will be allotted 25 percent each.

As part of the NFO, an upfront discount of 3% is being offered to all categories of investors.

The government had last year raised around Rs 8,500 crore through the CPSE-ETF in multiple tranches. It aims to raise Rs 72,500 crore from disinvestment in 2017-18 (Apr-Mar) and has so far raised around Rs 30,000 rupees from disinvestments this financial year.

The open-ended ETF will invest at least 95 percent of its corpus in companies constituting the underlying index, while up to 5 percent will be deployed in units of liquid or money market mutual fund schemes, money market instruments (with maturity not exceeding 91 days), including  collateralised borrowing and lending obligations, and cash and cash equivalents.

Other features:
* Minimum application: Retail--5,000 rupees and in multiples of 1
rupee thereafter
* Performance benchmark: S&P BSE Bharat 22 Index
* Exit Load: Nil
* Risk: High* Fund manager: Kayzad Eghlim
First Published on Oct 28, 2017 11:37 am
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