Bharat Bond ETF's Second Series NFO Collects Rs 10,992 crore

The second tranche of Bharat Bond ETF (exchange traded fund) collected Rs 10,992 crore. The new fund offers (NFOs) on two new Bharat Bond ETFs was launched on 14 July and closed on 17 July with a base issue size of Rs 3,000 crore, a green-shoe option of Rs 12,000 crore, taking the total size to Rs 15,000 crore.

The issue was oversubscribed by over three times witnessing wide retail participation of more than 40,000 applications.

"The second series of Bharat Bond ETF received an outstanding response, oversubscribed more than 3 times, estimated collection around Rs 10,000 crores with wide participation across categories," said Secretary DIPAM (Department of Investment and Public Asset Management) in a tweet.

Thankyou for an overwhelming response to BHARAT Bond ETF NFO which closes today. The issue has been oversubscribed over 3 times with collections reaching around Rs. 10,000 cr. Watch this space for more details. @EdelweissAMC @NSEIndia https://t.co/WQTTBYejcC

— Edelweiss Group (@EdelweissFin) July 17, 2020

One Bharat Bond ETF will mature after five years in April 2025 and the other after 11 years in April 2031. According to Edelweiss AMC's presentation, the 2025 Bharat Bond Index consists of 12 companies. Four companies which account for 56 percent of the index are Power Finance Corp, REC Ltd, Power Grid Corp and National Housing Bank.

The 2031 index consists of eight PSUs with Power Finance, REC, Power Grid and National Highways Authority of India (NHAI) accounting for 60 percent of the index.

The first series of Bharat Bond ETF came in December 2019 and was oversubscribed by 1.7 times and garnered over Rs 12,000 crore.