Bharat 22 ETF’s fourth tranche subscribed 12 times

The top five holdings are L&T, ITC, SBI, Axis Bank and NTPC, that account for 56% of the portfolio.

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The Bharat 22 ETF has a concentrated portfolio of 22 stocks.
The fourth tranche of Bharat 22 ETF, managed by ICICI Prudential, was subscribed 12 times, drawing bids worth ₹23,500 crore. “Bharat-22 FFO2 was oversubscribed by almost 12 times over base issue size of Rs 2,000 cr and got Rs 23,500 cr. GOI will retain Rs 4368 crore from the offer,” said a tweet by secretary, Department of Investment and Public Asset Management.

“Investors are interested in PSU stocks due to their low valuations, hopes of disinvestment and good corporate governance. Low expense ratio of 1 paisa and a discount of 3% on government shares is an additional plus,” said a fund manager at a domestic fund house.

The Bharat 22 ETF has a concentrated portfolio of 22 stocks. The top five holdings are L&T, ITC, SBI, Axis Bank and NTPC, that account for 56% of the portfolio.


As part of the government’s disinvestment programme, FFO2 of ICICI Prudential-managed Bharat 22 ETF was open for anchor investors on October 3, 2019 and non-anchor investors on October 4, 2019. On Thursday, the anchor investor portion was subscribed 27 times over the initial amount allocated to this category, raising ₹13,569 crore.

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