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The second tranche of Bharat-22 ETF was subscribed 2.3 times on the final day of the offering, with the issue garnering subscription to the tune of Rs 140 billion.
Through the Bharat-22 Exchange Traded Fund (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 24 billion.
Subscription has come in for 2.3 times of the base issue size of Rs 60 billion. Total bids worth Rs 140 billion were received on the last day.
The issue has seen resounding success with the FFO (follow-on fund offer) attracting applications aggregating nearly Rs 140 billion. The issue saw wide participation from the Foreign Institutional Investor under the Anchor and QIB category, the finance ministry said in a statement.
The government will exercise the green-shoe option and retain the additional Rs 24 billion worth bids received.
The government had on June 19 launched the follow-on fund offer of Bharat-22 ETF, which is managed by ICICI Prudential Mutual Fund.
In the Anchor Investor category, the offering was subscribed 3.4 times raising more than Rs 50 billion.
For the Non-Anchor Investor segment, bids worth Rs 90 billion have been subscribed.
Despite the challenging market in the year 2018, the ETF has garnered very strong subscription with encouraging response from FIIs (who have subscribed to the extent of Rs 75 billion), the ministry said.
With more than one lakh retail applications received, GoI's FFO of Bharat-22 ETF witnessed wide retail participation, the ministry said.
The state-owned companies that are part of the ETF include ONGC, IOC, SBI, BPCL, Coal India and Nalco.
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.
The government had in November last year launched the new fund offer (NFO) of Bharat-22 ETF comprising shares of 22 companies, including public sector undertakings (PSUs), public sector banks, ITC, Axis Bank and L&T.
The fund had garnered bids to the tune of Rs 320 billion, although the government retained only Rs 145 billion.
The government plans to raise Rs 800 billion in the current fiscal from disinvestment, lower than over Rs 1 trillion raised last year.
Besides, the initial public offering (IPO) of railway consultancy firm RITES got subscribed nearly 67 times so far on the final day of issuance. The IPO is expected to fetch over Rs 4.60 billion to the exchequer.
