All you need to know about Bharat-22 exchange traded fund

The government had in November last year launched Bharat-22 Exchange Traded Fund (ETF).

All you need to know about Bharat-22 exchange traded fund

New Delhi: The Finance Ministry will launch the second tranche of Bharat-22 exchange traded fund (ETF) on June 19 which will help raise up to Rs 8,400 crore from the markets.

The issue will open for anchor investors on June 19 and for other institutional and retail investors the next day. The ETF follow on offer will remain open till June 22.

The investors would get a 2.5 percent discount over the issue price.

Here is all you need to know about the Bharat-22 Exchange Traded Fund (ETF)

What is Bharat-22 ETF

The government had in November last year launched Bharat-22 Exchange Traded Fund (ETF). Bharat 22 consists of 22 stocks of CPSE's, PSB's and strategic holding of SUUTI.

This Index is a unique blend of shares of key CPSEs,Public Sector Banks (PSBs) and also the Government owned shares in blue chip private companies. The shares of the Government companies represent 6 core sectors of the economy - Finance, Industry, Energy, Utilities, Fast Moving Consumer Goods (FMCG) and Basic Materials.

Companies that come under Bharat-22 ETF

The state-owned companies or PSUs that are part of the new Bharat ETF-22 include the following:

  • National Aluminium Co Ltd
  • Oil & Natural Gas Corp Ltd
  • Indian Oil Corp Ltd
  • Bharat Petroleum Corp Ltd
  • Coal India Ltd
  • State Bank of India
  • Axis Bank Ltd
  • Bank of Baroda
  • Rural Electrification Corp Ltd
  • Power Finance Corp Ltd
  • Indian Bank
  • ITC Ltd
  • Larsen & Toubro Ltd
  • Bharat Electronics Ltd
  • Engineers India Ltd
  • NBCC (India) Ltd
  • Power Grid Corp of India Ltd
  • NTPC Ltd
  • Gail India Ltd
  • NHPC Ltd
  • NLC India Ltd
  • SJVN Ltd

What is the Target?

The government plans to raise Rs 80,000 crore in the current fiscal from disinvestment, lower than over Rs 1 lakh crore raised last year.

Retirement Fund under Bharat-22 ETF

In the Bharat-22 ETF, a Retirement Fund has been made separate category of Investors. In case of spill-over, additional portion will be allocated giving preference to retail and retirement funds. There is a 3 percent discount across the board.

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