Bharat 22 ETF Further Fund Offer opens today

Subscriptions during offer period to get 3% discount

The Further Fund Offer 2 (FFO 2) of Bharat 22 Exchange-Traded Fund (ETF), which is part of the government's divestment programme, will open for subscription on Wednesday for anchor investors and on Thursday for non-anchor investors.

The ETF, which will be managed by ICICI Prudential Asset Management Company, intends to raise up to ₹2,000 crore with an option to retain oversubscription, stated a release by the mutual fund entity.

An open-ended ETF, the fund allows investors to invest in a basket of government-owned and private sector entities like NTPC, Power Grid Corporation, ONGC, Indian Oil Company, State Bank of India, Bank of Baroda, L&T, ITC, Axis Bank and BPCL, among others.

In terms of sector weightages, the fund has the highest representation from industrials at 21.8%, followed by financials at 21.1%. Utilities has a weightage of 20.9% in the fund with energy and FMCG at 18.1% and 14.3%, respectively

The FFO is open for all categories of investors with the minimum application amount for retirement funds and qualified institutional buyers in the anchor category pegged at ₹10 crore.

Non-anchor category

For retail investors that can apply in the non-anchor category, the minimum application size has been fixed at ₹5,000 with the upper limit capped at ₹2 lakh. Further, all investor categories subscribing during the FFO period will get 3% discount on the reference price.

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Printable version | Feb 25, 2020 2:07:30 AM |

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