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Bharat 22 ETF, which was part of the government’s divestment programme, gained 3.8 per cent on its debut to close at ₹37.33 on Tuesday.
The ETF, managed by ICICI Prudential Asset Management Company, was issued to investors at ₹35.97 and to retail investors at a discount of 3 per cent. It touched a high of ₹37.37 and a low of ₹36.30 on the BSE, on a turnover of ₹380 crore.
On the NSE, the ETF opened at ₹36.11, touched a high of ₹37.40 and a low of ₹36.11 before closing with a gain of 3.70 per cent at ₹37.30.
Earlier this month, the government had raised ₹14,500 crore by diluting its stake in 22 blue-chip public sector companies to Bharat 22 ETF. The government had targeted ₹8,000 crore from the issue with a green-shoe option to retain part of the excess subscription. The one-of-its kind ETF had received bids worth ₹32,000 crore.
The weightage of each individual stock in the index is capped at 15 per cent and each sector in the index is capped at 20 per cent.
The ETF holds government stake in public sector companies such as ONGC (5.3 per cent), Indian Oil Corporation (4.4 per cent), State Bank of India (8.6 per cent), BPCL (4.4 per cent), Coal India (3.3 per cent), Nalco (4.4 per cent), Bharat Electronics (3.3 per cent), Engineers India (1.5 per cent), NBCC (0.6 per cent), NTPC (6.7 per cent), NHPC (1.2 per cent), SJVNL (0.2 per cent), GAIL (3.7 per cent), PGCIL (7.9 per cent), Power Finance Corp (1 per cent), NLC India (0.3 per cent), Indian Bank (0.2 per cent) and Bank of Baroda (1.4 per cent).
Besides, SUUTI holdings in Axis Bank (7.7 per cent), ITC (15.2 per cent) and L&T (17.1 per cent) were also part of the fund.
All-in-one basket
Bharat 22 is a well-diversified ETF with industrials accounting for 22.6 per cent, followed by finance 20.3 per cent, utilities 20 per cent, energy 17.5 per cent, FMCG 15.2 per cent and basic materials 4.4 per cent.
The government earlier transferred 1.93 crore share of Coal India worth nearly ₹507 crore and its holding in NLC worth ₹39 crore to Bharat 22 ETF.
The successful listing of Bharat 22 ETF brings the government closer to achieving its disinvestment target of ₹72,500 crore for 2017-18.
Of this target, ₹46,500 crore is to be raised through minority stake sale in PSUs and ₹15,000 crore from strategic sale. An additional ₹11,000 crore is expected to be raised through listing of insurance companies.
With the listing of Bharat 22 ETF, the Centre has so far raised ₹52,500 crore through disinvestment in the current fiscal, including listing of insurance PSUs.
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