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

15 November 2017

The new fund offer (NFO) of Bharat-22 Exchange Traded Fund (ETF) will open for subscription by retail investors on November 15 (the first day, November 14, is reserved for anchor investors). Each category of the investors will be sanctioned with 25% of the total units for subscription.

Of total equity assets under management of ₹1.25 trillion, ICICI Prudential AMC's investments in the above stocks is worth ₹25,000 crore, Nimesh Shah, Managing Director and Chief Executive Officer, of the fund said.

Under this ETF, the Retirement Fund has been made a separate category of investors.

This Index is a unique blend of shares of key central public sector enterprises (CPSEs), public sector banks (PSBs) and also the government owned shares in blue chip private companies like Larsen & Tubro (L&T), Axis Bank and ITC. Government companies constitute 61 percent of the index, and private sector companies are 39 percent.

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Companies available under Bharat-22 represents six core sectors namely Finance, Industry, Energy, Utilities, Fast Moving Consumer Goods (FMCG) and Basic Materials. NHPC, NLC India, NTPC, Oil & Natural Gas Corp, Power Finance Corp, Power Grid Corp of India, Rural Electrification Corp and SJVN are the other constituents of the fund.

As per ICICI Prudential website, minimum application amount for anchor investors is Rs 10 crore under which both retirement funds (RFs) investors and qualified institutional buyers (QIB) can subscribe.

This ETF is a part of government of India's overall disinvestment program, announced earlier by the Department of Investment and Public Asset Management. The ETF will track 22 companies that make the index.

The Narendra Modi government has set a disinvestment target of Rs 72,500 crore for the current fiscal, of which Rs 46,500 crore is to be raised through disinvestment mode, while Rs 15,000 crore is the target in the case of strategic disinvestment that involves the surrender of government's majority control of the company. Among non-anchor investors, retail investors can apply for Rs 5,000 and in multiples of Rs 1 thereafter up to Rs 2 lakh.

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