ICICI Prudential’s Bharat 22 ETF rises 3.8% on market debut
Mumbai: The Bharat 22 ETF, operated by ICICI Prudential Asset Management Co., rose 3.8% on its debut on Tuesday, following a robust response to its issue earlier this month. The new fund offer (NFO) of ICICI Prudential Mutual Fund’s Bharat 22 ETF was subscribed four times the initial size of Rs8,000 crore.
Bharat 22 ETF closed 3.78% higher at Rs37.33 per unit on the BSE, compared to the issue price of Rs35.97. In comparison, BSE’s 30-share Sensex closed 0.31% lower at 33,618.59 points. The ETF is a part of the government’s overall disinvestment programme, and mirrors the S&P BSE Bharat 22 Index comprising select companies from the CPSE (Central Public Sector Enterprises) universe, stakes held under the Specified Undertaking of the Unit Trust of India (SUUTI), and state-run banks.
The S&P BSE Bharat 22 Index has a diversified representation in six BSE sectors—industrials, finance, utilities, energy, fast-moving consumer goods and basic materials.
The index follows a free float adjusted market cap weighing methodology, with weighting of each individual index constituent capped at 1.5%, while weighting of each BSE sector is capped at 20%.