Bharat-22 exchange traded fund lists with over 3% gain

Bharat 22 exchange traded fund (ETF) made its debut on the bourses on Tuesday and rose as much as 3.78 per cent. The ETF opened the session at Rs 36.30, 0.91 per cent above its issue price of Rs 35.97. The ETF ended the session at Rs 37.33.

Bharat 22 ETF’s new fund offer (NFO) received applications worth nearly Rs 32,000 crore, four times the initial size of Rs 8,000 crore. Following the response from the investors, the issue size was raised to Rs 14,500 crore. The Bharat 22 ETF, comprises scrips of 22 companies including 19 public sector enterprises. The scrips include National Aluminium Company, Coal India, State Bank of India, Axis Bank, Indian Bank, Larsen & Toubro and Bharat Electronics.

The Bharat 22 ETF is a vehicle used to further the government’s disinvestment programme.

The government had budgeted to raise Rs 72,500 crore in FY17 through divestments in PSUs and the strategic sale of shares. So far the government has raised around Rs 52,339 crore from initial public offerings (IPOs), buybacks, offer for sale (OFS) and strategic divestments. FE