Bharat Bond NFO Tranche II oversubscribed 3.7 times

Edelweiss Asset Management on Monday evening announced that the Bharat Bond NFO Tranche II has been a resounding success, receiving applications amounting to Rs 10,992 crores.The initial NFO issue size of Rs 15,000 crores (base issue size of Rs 3,000 crores with a green shoe option of Rs 12,000 crores) was oversubscribed by over 3.7 times. The 2025 maturity date category received applications for Rs 4,531 crores, an oversubscription of 2.3 times and the 2031 Maturity category received applications for Rs 6,461 crores an oversubscription of 6.5 times. All the subscription will be retained in both the categories, to accommodate the overwhelming demand Green shoe option in 2031 maturity is being increased from Rs 5,000 crores to Rs 6,000 crores.

Speaking on the huge response to the Bharat Bond NFO Tuhin Kanta Pandey, Secretary DIPAM, Ministry of Finance said, “The overwhelming response and over-subscription of the BHARAT Bond ETF tranche II issue shows that the product is well accepted and there is enough demand from investors for CPSE Bonds. The wide participation from investors during the current environment is very encouraging. This has helped participating CPSEs in raising long term resources that will aid their capex plans in the current financial year.”

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Radhika Gupta, MD & CEO at Edelweiss Mutual Fund said, “We are very happy with the strong raise BHARAT Bond ETF NFO has seen, more importantly wide participation from various sets of investors despite challenging times. This gives us confidence to keep building the BHARAT Bond ETF program and launch more ETFs in coming time with various maturities across the yield curve. In just six months, BHARAT Bond ETF program now manages a significant amount across four ETFs launched in the last six months. Over Rs. 15,000 cr worth assets are in the 10 years segment which helps in building long term investing culture amongst investors in debt funds.”

The ETF will invest in constituents of the NIFTY BHARAT Bond Indices, consisting of AAA rated public sector companies. BHARAT Bond Fund of Funds (FOF) with similar maturities were also launched for investors, who did not have demat accounts. The BHARAT Bond ETF program aims to achieve its ultimate objective of creating a liquid yield curve for CPSE bonds and helps further the agenda of development of bond markets. Eventually, BHARAT Bond ETF program will keep growing further and will provide a safe and secure investment avenue for investors across maturities and provide an easy and alternate method for CPSEs to raise funds.