Bharat-22 ETF: BSE's mutual fund platforms received 90% applications

BT Online        Last Updated: November 22, 2017  | 10:34 IST
Bharat-22 ETF: BSE's mutual fund platforms received 90% applications

With Bharat 22 ETF issue delivering a robust push to the Narendra Modi government's Rs 72,500-crore divestment target this fiscal, top bourse BSE has said its mutual fund platform has contributed to over 90 per cent subscription for BSE Bharat 22 ETF's new fund offer (NFO).

BSE's e-platforms BSE StAR MF and BSE BiMF have garnered Rs 4,630.60 crore of the Rs 14,500 crore raised through the Bharat-22 Exchange Traded Fund (ETF), comprising 22 companies.

"In the just-concluded government stake divestment through Bharat 22 ETF offer, BSE's e-platforms (BSE StAR MF and BSE BiMF) garnered Rs 4,630.60 crore contributed by 1,12,780 applications, predominately in retail category," the BSE said.

BSE StAR MF saw a growth in orders on year-on-year basis to Rs 65.5 lakh in FY16-17 from Rs 33 lakh in FY15-16.

Watch video:  Decoding Bharat 22 ETF

In terms of value, the StAR MF has grown to Rs 75,000 crore in FY16-17 from Rs 44,000 crore in FY15-16.

BSE StAR MF processed over 86.5 lakh orders aggregating to Rs 62,157 crore on the platform till November 20 of FY17-18, which is close to 20% of the total mutual fund purchase in India.

On November 14, the ETF comprising 22 companies received robust response from anchor investors. The issue attracted bids with the portion reserved for them getting subscribed six times to the tune of Rs 12,000 crore on the opening day.

ICICI Prudential Mutual Fund-managed Bharat 22 ETFs new fund offer (NFO) had a size of over Rs 8,000 crore. LIC, Bank of India, SBI Pension Fund, EPFO and HDFC Ergo Insurance among others put in bids for the issue.

As much as 25 per cent of total issue size, or Rs 2,000 crore, was reserved for anchor investors who put in bids worth about Rs 12,000 crore, ICICI Prudential MF said. The NFO received subscriptions from across the board including mutual funds, foreign portfolio investors, insurance and retirement funds.

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