Bharat-22 ETF’s Fourth Tranche Likely In October, ICICI Prudential AMC Files Draft Papers

The government is likely to launch the fourth tranche of Bharat-22 Exchange Traded Fund in October with ICICI Prudential Asset Management Company Ltd. filing draft papers with Securities and Exchange Board of India to manage the offering.

The decision has been taken after receiving robust response for earlier stake sales by the government in the product.

The government has so far raised Rs 26,400 crore through the Bharat-22 ETF—Rs 14,500 crore in November 2017, Rs 8,400 crore in June 2018 and Rs 3,500 crore in February 2019.

ICICI Prudential AMC filed the 'Supplement To Scheme Information Document' with Sebi for Bharat-22 ETF FFO 2 on Wednesday.

"The fourth tranche of Bharat-22 ETF may hit the markets next month," an official privy to the development said. Proceeds from the ETF will help the government towards meeting its diinvestment target of Rs 1.05 lakh crore for 2019-20.

The CPSE stocks in the Bharat-22 ETF include Oil and Natural Gas Corporation Ltd., Indian Oil Corporation Ltd., State Bank of India, Bharat Petroleum Corporation Ltd., Coal India Ltd. and National Aluminium Co. Ltd.

The other constituents are Bharat Electronics Ltd., Engineers India Ltd., NBCC (India) Ltd., NTPC Ltd., NHPC Ltd., SJVN Ltd., GAIL (India) Ltd., Power Grid Corporation of India Ltd., NLC India Ltd., Axis Bank Ltd., ITC Ltd. and Larsen & Toubro Ltd.

Only three public sector banks—SBI, Indian Bank and Bank of Baroda—figure in the Bharat-22 index.