Fourth tranche of Bharat-22 ETF: Anchor traders put in Rs 13,500-cr bids, subscription soars 27 occasions
New Delhi: The fourth tranche of Bharat-22 exchange-traded fund acquired an awesome response from institutional gamers on Thursday with the portion reserved for anchor traders garnering bids value Rs 13,500 crore, round 27 occasions of the scale.
The ETF situation that opened on Thursday acquired subscriptions from traders like mutual funds, overseas portfolio traders, and insurance coverage funds.
The follow-on fund supply will open for subscription for retail and different institutional traders on Friday (as we speak). The traders would get a three p.c low cost over the difficulty worth.
ICICI Prudential Mutual Fund is managing the Bharat-22 ETF’s fund supply, by means of which the federal government goals to boost an preliminary quantity of Rs 2,000 crore with a green-shoe choice to retain over-subscription.
The federal government has not taken a remaining name on the quantity that shall be retained from the over-subscription however sources aware about the event stated that the federal government could retain an over-subscription of Rs 6,000 crore, which can take the entire dimension to Rs 8,000 crore.
As a lot as 25 p.c of the difficulty dimension, or Rs 500 crore was reserved for anchor traders who put in bids value about Rs 13,569 crore. This interprets into 27 occasions over the preliminary quantity allotted to this class, ICICI Prudential MF stated in an announcement.
“We are happy to see the continued support received from anchor investors towards the FFO 2 of Bharat-22 ETF. Now, we look forward to active participation from non-anchor investor category tomorrow, whereby one has the opportunity to own some of the jewels of corporate India at a discounted price,” stated Nimesh Shah, MD and CEO, at ICICI Prudential MF.
Sources On Bharat 22 FFO: Rs 13,500 cr of subscriptions acquired in opposition to base supply of Rs 500 cr for anchor traders https://t.co/7XhYhc1W94
— CNBC-TV18 (@CNBCTV18Dwell) October 3, 2019
The choice to return out with one other tranche of the ETF has been taken after receiving strong response for earlier stake sale by the federal government within the product.
The federal government has up to now raised round Rs 35,900 crore by means of Bharat-22 ETF — Rs 14,500 crore was garnered in November 2017, one other Rs 8,400 crore was mopped up in June 2018 and Rs 13,000 crore in February this 12 months.
Proceeds from the ETF will assist the federal government meet its disinvestment goal of Rs 1.05 lakh crore for the present monetary 12 months.
The central public sector enterprises which can be a part of the Bharat-22 ETF embody ONGC, IOC, SBI, BPCL, Coal India and Nalco.
Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL, NLC India, Axis Financial institution, ITC and L&T are the opposite constituents.
Solely three public sector banks—SBI, Indian Financial institution and Financial institution of Baroda—determine within the Bharat-22 index.