Bharat 22 ETF to raise Rs 8,400 cr from new issue

After announcing a Rs 466-rore Rites IPO this week, the government is looking to raise Rs 8,400 crore through Bharat 22 ETF Further Fund Offer (FFO), which is being managed by ICICI Prudential Asset Management Company.

Bharat 22 ETF FFO to raise Rs 6,000 crore, with a green-shoe option to retain Rs 2,400 crore more, opens on June 19 and closes on June 22.

The ETF received good response last year when it was launched.

"The success of Bharat 22 ETF NFO…was oversubscribed by all investor categories, including retail investors,” said Atanu Chakraborty, secretary Dipam, ministry of finance.

The FFO has set aside 25 per cent shares each for anchor investors, retail individual investors, retirement funds and qualified institutional & non-institutional investors.

“The dividend yield of S&P BSE Bharat 22 Index, which is the underlying of the ICICI Prudential managed Bharat 22 ETF, is approximately 2.6 per cent…In addition, ICICI Prudential managed Bharat 22 ETF has an expense ratio of less than 1 bps, which is among the lowest in the Indian ETF universe,” ICICI Prudential AMC said in a release.