Economy

Bharat 22: ICICI MF rolls out ETF

Bharat 22: ICICI MF rolls out ETF”

As much as 25 percent of the total issue size, or Rs 2,000 crore, was reserved for anchor investors who put in bids worth about Rs 12,000 crore, ICICI Prudential MF said. This ETF is a part of government's overall disinvestment programme, which has set a target of realising Rs 72,500 crore this fiscal.

This is expected to benefit long term and retail investors by providing an opportunity of participation in equity stocks of the government run companies and earn stable returns, he added. "This Index is a unique blend of shares of key CPSEs, Public Sector Banks (PSBs) and also the Government owned shares in blue chip private companies like Larsen & Tubro (L&T), Axis Bank and ITC", he tweeted.

The underlying index of the Bharat-22 ETF has higher dividend yield, lower price-to-earnings ratio and price-to-book ratio compared to the S&P BSE Sensex and Nifty 50, which make investments attractive, given the current market conditions of high valuation and slow growth in earnings. In case of spill-over, additional portion will be allocated giving preference to retail and retirement funds.

"We are delighted to see the overwhelming response received from anchor investors and aiding the Government of India's disinvestment programme".

As per ICICI Prudential website, minimum application amount for anchor investors is Rs 10 crore under which both retirement funds (RFs) investors and qualified institutional buyers (QIB) can subscribe. NHPC, NLC India, NTPC, Oil & Natural Gas Corp, Power Finance Corp, Power Grid Corp of India, Rural Electrification Corp and SJVN are the other constituents of the fund. The ETF aims to bring Rs 8,000 crore to the government. On Monday, the S&P BSE Bharat-22 Index closed at 3,751.81, down 1.1 per cent. The fund will invest in 22 stocks in the CPSE universe, which are mostly large cap companies in six sectors - materials, utilities, energy, industrial, FMCG and finance.

These stocks will have a weightage based on free float market capitalisation with maximum weight to sector and stock of 20 per cent and 15 per cent, respectively, at the time of the annual rebalancing in March each year.



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