The second tranche of Bharat-22 Exchange Traded Fund (ETF) saw bids worth Rs 15,436 crore from investors, which is more than twice the amount sought to be raised.
Through Bharat-22 ETF, comprising shares of 22 companies, the government had targeted to mop up Rs 6,000 crore with a green-shoe option of another Rs 2,400 crore.
Subscription has come in for 2.57 times of the base issue size of Rs 6,000 crore. The total bids that has come in is for Rs 15,436 crore and 1.2 lakh applications have come in, ICICI Prudential Mutual Fund, which is managing the follow-on fund offer (FFO) of Bharat-22 ETF, said in a statement today.
The government is likely to exercise the green-shoe option to retain the additional Rs 2,400 crore worth bids received.
The government had on June 19 launched the follow-on fund offer Bharat-22 ETF. It closed on June 22.
On the first day of the issuance, anchor investors put in bids worth Rs 5,163 crore, which was 3.44 times the portion reserved for them.
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According to Nimesh Shah, MD and CEO at ICICI Prudential AMC, the FFO attracted wide participation across all investor segments, especially from retail investors which is very encouraging.
"We believe investing in this ETF is one of the ways of investing into India's growth story. The ETF is available at lower valuations along with relatively high dividend yield," he added.
The state-owned companies that are part of the ETF include ONGC, IOC, SBI, BPCL, Coal India and Nalco.
"We are very pleased with the tremendous response during the Further Fund Offer of Bharat 22 ETF...the offer has witnessed wide participation," said Atanu Chakraborty, Secretary, Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.
The other central public sector enterprises on the list are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL and NLC India. Only three public sector banks -- SBI, Indian Bank and Bank of Baroda -- feature in the Bharat-22 index.