ICICI Prudential AMC is looking to raise up to Rs 6,000 crore through the FFO, with an option to retain over subscription of up to Rs 2,400 crore
ICICI Prudential Mutual Fund will launch the further fund offer (FFO) for the Bharat-22 ETF on June 19, the fund house said in a release.
The FFO is part of the government's overall disinvestment program, as announced earlier by the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.
ICICI Prudential AMC is looking to raise up to Rs 6,000 crore through the FFO, with an option to retain over subscription of up to Rs 2,400 crore, subject to the government's approval.
The dividend yield of the S&P BSE Bharat 22 Index, which is the underlying for the ICICI Prudential-managed Bharat-22 ETF, is approximately 2.6 percent.
In addition to this, the Bharat 22 ETF has an expense ratio of less than 1 basis point, which is among the lowest in the Indian ETF universe. These factors highlight the merit of investing in the ETF.
The FFO is open for all categories of investors, including anchor investors, retail investors, retirement funds, qualified institutional buyers, non-institutional investors and foreign portfolio investors (FPIs).
As part of the FFO, an upfront discount of 2.5 percent will be offered to all categories of investors. The offer will remain open till July 22.
The FFO will also help the government meet minimum public shareholding norms in public sector companies like Coal India.
The government launched the Bharat-22 ETF in November last year. The fund had shares of 22 companies, including public sector companies, public sector banks, ITC, Axis Bank and L&T.
The fund had garnered bids of around Rs 32,000 crore, although the government retained only Rs 14,500 crore.
The government plans to raise a total of Rs 80,000 crore in the current fiscal year from disinvestment.
In a public notice issued on Monday, it said it will divest 12 percent stake in railway consultancy firm RITES through an IPO, which will be launched on June 20.(With inputs from PTI)