Monday 13 November 2017

Bharat 22 ETF opens today, aims to raise Rs 8,000 crore

Bharat 22 ETF aims to bring broad-based ownership pattern to public sector enterprises: Department of Investment and Public Asset Management


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The Bharat 22 Exchange Traded Fund (ETF) announced earlier this year as part of the government's disinvestment programme will open for investors on Tuesday and end on November 17.
With the initial issue size of Rs 8,000 crore, the ETF will open for anchor investors on Tuesday, for non-anchor investors on November 15, and close on November 17, Department of Investment and Public Asset Management (DIPAM) Joint Secretary Anuradha Thakur told reporters here.

"Bharat 22 ETF aims to bring broad-based ownership pattern to public sector enterprises. The disinvestment programme now forms the core of the government's investment strategy," she said.
"While the initial issue size for the ETF is Rs 8,000 crore, we can also consider going beyond looking at the response," she added.

A discount of 3 per cent has been offered to all categories of investors.

The Bharat 22 ETF comprises 22 companies, or investments, from among central public sector enterprises (CPSEs) and public sector banks (PSBs).

"The ETF is well diversified with investments across six core sectors, including industrials, finance, utilities, energy, FMCG (fast moving consumer goods) and basic materials, and offers good investment opportunity and expect an overwhelming response to this new fund offer," Thakur said.

No sector crosses the 20 per cent sectoral capping and there is a stock capping of 15 per cent.

An ETF is a traded security that tracks an underlying asset like a group of companies or commodity. The government had earlier approved the alternative mechanism through the ETF route to divest its stake in CPSEs....For more detailes


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