New Delhi: The fourth tranche of Bharat-22 exchange traded fund was subscribed nearly 12 times on the final day of offering on Friday, with the issue garnering bids worth ₹23,500 crore.
Through the Bharat-22 ETF, comprising shares of 22 companies, the government had targeted to raise an initial amount of ₹2,000 crore with a green-shoe option to retain additional subscription.
The government has decided to exercise the green-shoe option and retain the additional ₹4,368 crore worth bids received, the Department of Investment and Public Asset Management (DIPAM) said in a tweet.
The scheme, which is managed by ICICI Prudential Mutual Fund, was opened for anchor investors on Thursday and for retail and other non-institutional investors on Friday.
The investors would get a 3 per cent discount over the issue price.
"Bharat-22 FFO2 was oversubscribed by almost 12 times over base issue size of ₹2,000 crore @ ₹23,500 crore. Government of India will retain ₹4,368 crore from the offer," DIPAM said.
In the anchor investor category, the offering was subscribed 27 times raising more than ₹13,500 crore.
The government has so far raised around ₹35,900 crore through Bharat-22 ETF -- ₹14,500 crore was garnered in November 2017, another ₹8,400 crore was mopped up in June 2018 and ₹13,000 crore in February this year.
Proceeds from the ETF will help the government meet its disinvestment target of ₹1.05 lakh crore for the current financial year.
"We believe investing in this ETF is one of the ways of owning jewels of corporate India which seek to provide growth and stability," said Nimesh Shah, MD and CEO, at ICICI Prudential AMC.
The central public sector enterprises that are part of the Bharat-22 ETF include ONGC, IOC, SBI, BPCL, Coal India and Nalco.
Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL, NLC India, Axis Bank, ITC and L&T are the other constituents.
Only three public sector banks -- SBI, Indian Bank and Bank of Baroda -- figure in the Bharat-22 index. PTI SP MR MR