The Government on Monday announced the launched of the New Fund Offer (NFO) of Bharat 22, an open-ended Exchange Traded Fund (ETF), which is a part of the Government's overall disinvestment programme.
Through the ETF, ICICI Prudential AMC proposes to raise an initial amount of Rs 8,000 crore plus additional amount subject to approval from the Government. The NFO will open for anchor investors on Tuesday and for non- anchor investors on November 15 and close on November 17.
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). Disinvestment programme now forms the core of Govt’s investment strategy which is all about better management, more efficient governance, transparency and accountability.” “The ETF is well diversified with investments across six core sectors and offers good investment opportunity and expect an overwhelming response to this NFO,” she added.
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 highlight of the scheme is its in-built mechanism for rebalancing and ability for periodic booking in stocks which has delivered better returns.” The ETF launched mirrors the S&P BSE Bharat 22 Index which comprises of select companies from the CPSE universe, stakes held under the Specified Undertaking of the Unit Trust of India (SUUTI) and Public Sector Banks (PSBs), from the underlying universe consisting CPSE companies, SUUTI A Group companies, and PSU Banks.
Starting from Tuesday, the NFO is open for subscription till November 17, 2017. An discount of 3 per cent is being offered to all categories of investors- anchor investors, retail individual investors, retirement funds, QIBs and non-institutional investors.