Bharat 22 ETF lists on BSE, NSE: A sneak peek into top five firms and their financials

Aseem Thapliyal        Last Updated: November 28, 2017  | 17:23 IST
A sneak peek into top five Bharat 22 ETF firms and their financials

Gone are the days of the government selling its stake in companies directly, at least the listing of Bharat 22 ETF on the stock exchanges seems to suggest the same. Three years after the CPSE ETF was launched, the Narendra Modi government took to selling its stake in India's top firms (all large caps) via the Bharat 22 ETF which made its debut on the BSE and NSE today.  The ETF saw huge interest from anchor investors with portion reserved for them getting subscribed six times to the tune of Rs 12,000 crore on the opening day.

Also read: Bharat 22 ETF lists with over 3% gains on BSE, NSE

As much as 25 per cent of the total issue size, or Rs 2,000 crore, was reserved for anchor investors.

The government succeeded in raising Rs 14,500 crore through the fund which received bids worth a staggering Rs 32,000 crore, the highest ever for a mutual fund. The government had launched the Bharat-22 ETF comprising stocks of blue-chip public sector companies in August with plans to raise Rs 8,000 crore. However it had kept its option open to retain over-subscribed bids.

Today, the open-ended exchange traded fund listed on the BSE at 36.30 per unit, a 0.91 per cent premium over its issue price of Rs 35.97 per unit.

While some investors might have reaped gains from their short-term investment, there are chances others would have been left out of the race. Today, we are starting a series of stories divided into four parts which will cover profile and financials of these Bharat 22 ETF firms (in descending order of market capitalisation).

ITC: A multi-business enterprise engaged in FMCG, hotels, paperboards & specialty papers, packaging, agri-business, and information technology. The company has significant presence across all the three sectors of the Indian economy, namely, agriculture, manufacturing and services. In agriculture, the company has created rural assets that have raised farm incomes and improved the quality of life of the rural population. The company has made substantial investments in R&D in the manufacturing and created world-class FMCG brands in the branded packaged foods, personal care, education and stationery, lifestyle retailing, agarbattis and safety matches. In services sector, ITC is acknowledged for its iconic properties, hospitality and service excellence.

SBI: The state-run lender is the oldest commercial bank in India with a legacy of over 200 years. Headquartered in Mumbai, SBI is the largest commercial bank in terms of assets, deposits, branches, number of customers and employees.  

The bank has a customer base of more than 33.75 crore with business verticals in personal banking, corporate banking and investment banking. With workforce of over 2 lakh, the bank has 23.07% and 21.16% share in deposits and advances, respectively. The bank has a total branch network of 17,170 as of March 2017 of which 64% are in rural and semi-urban areas. The lender witnessed a major consolidation in April 2017 after the merger with its associate Banks and Bharatiya Mahila Bank.

Oil & Natural Gas Corporation:  With contribution of nearly 70% to the Indian domestic production, ONGC is the largest producer of crude oil and natural gas in India. Conferred Maharatna status in Nov 2010, the company has in-house service capabilities in all areas of exploration and production of oil and gas and related oil-field services. It has a work force of more than 33,900 employees. In FY17, the company made 23 oil and gas discoveries and drilled more than 500 wells. Its wholly owned subsidiary ONGC Videsh Limited is the biggest Indian multinational in the energy space, participating in 36 oil and gas properties in 17 countries.

Indian Oil Corporation: The company has presence in almost streams of oil, gas, petrochemicals and alternative energy sources and owns and operates 11 of India's 23 refineries.

It distributes petroleum fuels to every nook and corner of the country through its network of over 46,500 customer touch-points. It has over 26,000 fuel stations, including over 7,000 Kisan Seva Kendra (KSK) outlets in rural markets. Its Indane LPG gas distibution network reaches to the doorsteps of 11 crore households in over 6,250 markets through a network of over 9,550 distributors. Indian Oil's Aviation Service commands a 59.3% market share in aviation fuel, serving national and international flag carriers, private airlines and the Indian defence services with equal efficiency.

Larsen & Toubro:  L&T is a conglomerate with business verticals in technology, engineering, construction, manufacturing and financial services. The key sectors that L&T addresses are hydrocarbon, infrastructure, power, process industries and defence. The company's manufacturing vertical extends across eight countries in addition to India. Its businesses are supported by a wide marketing and distribution network, and have established a reputation for strong customer support.  55% of the workforce of the company is below the age of 30.

With data inputs from Sameer Bhardwaj

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