Bharat-22 ETF managed by ICICI Prudential to raise Rs 8000 crore

Lloyd Doyle
November 15, 2017

"We are delighted to see the overwhelming response received from anchor investors and aiding the Government of India's disinvestment programme".

The fund comprises leading blue-chips such as ITC (through SUUTI) with 15.2 percent weightage, State Bank of India with 8.6 percent weightage, and Axis Bank (through SUUTI) with 7.7 percent weightage. About 39 per cent of the index will constitute private companies, and the rest PSUs.

However, Nimesh Shah, MD & CEO, ICICI Prudential Asset Management Company Ltd, said, "We believe the ETF offers an attractive long term investment opportunity to partake in the India growth story by way of a diversified blend of companies spread across several sectors and are available at attractive valuation and a good subscription discount". The other central public sector entities on the list are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL and NLC India.

ICICI Prudential Mutual Fund managed Bharat 22 ETF's new fund offer (NFO) has size of over Rs8,000 crore.


Speaking at the event, Senior Government official Anuradha Thakur, Joint Secretary, Department of Investment and Public Asset Management (DIPAM) observed, "BHARAT 22 aims at bring broad-based ownership pattern to the public sector enterprises (PSEs)". The fund will invest in 22 stocks in the CPSE universe, which are mostly large cap companies in six sectors - materials, utilities, energy, industrial, FMCG and finance.

"The BHARAT 22 ETF is an excellent avenue for investors to participate in some of the best companies with high future grown potential".

The government has raised a total of ₹11,500 crore through the CPSE ETF (first launched in March 2014) comprising 10 PSUs, including the ones mentioned above. Among non-anchor investors, retail investors can apply for Rs 5,000 and in multiples of Rs 1 thereafter up to Rs 2 lakh. The government had earlier approved the alternative mechanism through the ETF route to divest its stake in CPSEs.

Other reports by Iphone Fresh

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