The Bharat 22 ETF new fund offer (NFO) from ICICI Prudential Mutual Fund has received subscriptions valued at Rs. 12,000 crores on its very first day according to a news report published by Livemint. The ETF’s NFO was opened to investors on Tuesday, the 14th of November with anchor investor reservation of Rs. 2,000 crores. So in effect the Bharat 22 ETF has received 6 times the anchor investor reservation amount at the end of the first day itself, the Livemint report has pointed out. The report added that in case of spill over, the ETF would be allocated to investors with preference to retirement funds and retail investors with a 3% discount on initial subscription price applicable to all such investments.
The report added that this ETF has already received subscriptions from multiple institutional investors including HDFC Ergo Insurance, EPFO, SBI Pension Fund, Bank of India and LIC apart from individual investors. The NFO of this scheme will be open to retail investors till the 17th of November 2017. The Bharat 22 ETF invests in 22 leading public sector companies suitable for disinvestment and is expected to help the government meet its current Rs. 72,500 crores disinvestment target. Prior to launch, the Bharat 22 ETF was expected to have a total size of Rs. 8000 crores, however, this is expected to undergo a revision following the overwhelming NFO response on the very first day itself.