In order to offer the best opportunities for the prospective investors, the Government will launch the 'Bharat 22' Exchange Traded Fund (ETF) on November 14 & 15 for anchor investors and retail investors respectively.
It is expected that the Centre will garner about Rs 8,000 crore from the offer and the fund will be fully managed by ICICI Prudential Asset Management Company (AMC) ltd. The new fund offer or NFO will close on November 17, according to ICICI Pru AMC ltd.
The company on Saturday filed the launch documents for Bharat 22 ETF-NFO. “This ETF 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),” it said.
The Bharat 22 ETF initiative is a part of Government's overall disinvestment programme, announced in August 2017 by the Department of Investment and Public Asset Management (DIPAM) under Ministry of Finance.
However, DIPAM Secretary Neeraj Kumar Gupta said, “The Bharat 22 ETF is an excellent avenue for investors to participate in some of the best companies with high future growth potential. The ETF is well diversified with investments across six core sectors - basic materials, energy, finance, FMCG, industrials, and utilities. It offers good opportunity and prospects for investors and we are confident of an overwhelming response to this NFO.”
As part of the NFO, an upfront discount of 3 per cent is being offered to all categories of investors.
“We are pleased to announce the filing of launch documents of Bharat 22 ETF. 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,” said Nimesh Shah, Managing Director & CEO, ICICI Prudential Asset Management Company ltd.
The NFO is open for all categories of investors, including anchor investors, retail individual investors, retirement funds, qualified institutional buyers (QIBs) and non-institutional investors as well.