Bharat 22 ETF To Open On October 4

The government aiming to reach its divestment target will launch its fourth tranche of Bharat 22 ETF on October 3. The issue will help the government collect a total of Rs. 8,000 crore.

The previous issuances of Bharat 22 ETF have also been successful with an overall mop up to the government to the tune of Rs. 35,900 crore.

For the anchor investors, the issue will launch on October 3, while for retail and institutional investors, the very next day. The investors would get a 3 per cent discount over the issue price.

"The offer is likely to have a base issue size of Rs 2,000 crore, with a green-shoe option to retain another Rs 6,000 crore, taking the total amount to Rs 8,000 crore," a source privy to the development said.

For the current fiscal year, the government's diverstment target is placed at Rs. 1.05 lakh crore.

The Central Public Sector Enterprises that are part of the Bharat-22 ETF include ONGC, IOC, SBI, BPCL, Coal India and Nalco.
Other constituents are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL, NLC India, Axis Bank, ITC and L&T.
Only three public sector banks -- SBI, Indian Bank and Bank of Baroda - are found in the Bharat-22 index.

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