Bharat 22 — Exchange Traded Fund (Bharat 22 ETF) opened for subscription for anchor investors on Tuesday, and will be available for other institutional and retail investors Wednesday onwards. The issue will close on June 22. 
 
"The Further Fund Offer (FFO) of ICICI Prudential managed Bharat 22 ETF is part of the government of India's overall disinvestment program, announced earlier by the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, using the ETF route," said ICICI Prudential in a press release. 
 
Below is everything you must know about Bharat 22 ETF:
 
The government is aiming at mopping up Rs 6,000 crore, with a green-shoe option to retain another Rs 2,400 crore from the Bharat-22 ETF follow on offer to be launched on June 19.
 
The FFO is open for all categories of investors including Anchor Investors, Retail Investors, Retirement Funds, QIBs, Non-institutional investors and Foreign Portfolio Investor (FPIs).
 
As part of the FFO, an upfront discount of 2.5 per cent is being offered to all categories of investors who would get a 2.5 per cent discount over the issue price.
 
This offer would help the government in meeting the minimum public holding norm in PSUs like Coal India.
 
The state-owned companies or PSUs that are part of the new Bharat ETF-22 include ONGC, IOC, SBI, BPCL, Coal India and Nalco.
 
The other central public sector enterprises on the list are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL and NLC India. 
 
Only three public sector banks -- SBI, Indian Bank and Bank of Baroda -- figure in the Bharat-22 index. 
 
The units of the scheme are proposed to be listed on the BSE and NSE within five business days from the date of allotment.

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Allotment percentages for each category of Investors: 

  • Anchor Investors – 25%
  • Non-Anchor Investors
  • Retail Individual Investors - 25%
  • Retirement Funds – 25%
  • QIB and NII – 25%

 Should you invest:
 
Experts believe Bharat 22 ETF is not attractive as the ETF is bereft of many robust companies growing at a fast pace. Big companies like Reliance Industries, HDFC, HDFC Bank and Hindustan Unilever etc are not a part of Bharat 22 ETF, although they are the frontrunners in their respective sectors.  
 
Besides, the performance of Bharat 22 ETF 1 has not been satisfactory. The ETF has tanked 7 per cent, slipping below its issue price.  
 
The 22-share ETF is down 1.6 per cent in the last one month against 2 per cent surge in Sensex. In the last three months, Bharat 22 ETF remained little changed while Sensex grew 7 per cent. Taking into consideration the six-month performance, the index shed 1.7 per cent. By comparison, Sensex gained 1 per cent.