Tuesday, October 4, 2022

Govt raised Rs 4,368 cr via 4th tranche of Bharat-22 ETF

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New Delhi: The Centre has raised Rs 4,368 crores through the fourth tranche of the Bharat-22 ETF, government officials said. The further fund offer-2 (FFO-2) of the Bharat-22 ETF was subscribed 12 times over its base issue size of Rs 2,000 crore, as it received bids for Rs 24,000 crore worth of units. Officials at the Department of Investment and Public Asset Management (DIPAM) said that the government will exercise its green-shoe option and retain Rs 4,368 crore of the overall bids received over the two days.

Remaining funds to be raised in open market

ICICI Mutual Fund (MF), which manages the ETF, said that DIPAM had fixed the overall issue size at Rs 5,742 crores. The remaining funds will be raised through sales in the open market, which will then be purchased by Bharat-22 ETF, people in the know said.

ICICI note shows no disinvestment at these PSUs

Another note by ICIC MF said that the government had decided to not disinvest its stake in ITC, REC, Engineers India, Nalco, and IOCL in the ETF, and ETF would accordingly purchase shares of these companies from the open market.

What is Bharat-22 ETF?

The ETF had opened for subscription on Thursday and the anchor book got subscribed 27 times. Prior to October 4, the subscription was open only to anchor investors. However, later, retail investors could also put in their bids. The ETF includes public sector undertakings like ONGC, Indian Oil, BPCL, SBI, Bank of Baroda, REC, and PFC, among others. The government’s strategic stake held in private firms such as Larsen & Toubro, Axis Bank, and ITC are part of the Bharat-22 ETF basket.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)

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