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

Bharat 22 ETF, the latest divestment product from the Narendra Modi government's stable, listed with over 3 percent gains on NSE today.

At 10:20 am, the exchange traded fund (ETF) comprising stocks of 22 firms was trading at 37.24, over 3.53 percent higher on the NSE. The ETF opened at 36.11 level and hit a high of 37.40 level during intra day trade.

Also read: Bharat 22 ETF vs CPSE ETF: A sneak peek into the two funds

Around 15.41 crore shares of the ETF changed hands on the NSE with the fund clocking trade worth Rs 57,393 lakh till 10: 24 am. On the BSE, the open-ended exchange traded fund got listed at 36.30 per unit, a 0.91 per cent premium over its issue price of Rs 35.97 per unit.

The ETF comprises leading companies from the private sector having an exposure of 39 per cent to the fund while the rest are public sector firms. The fund comprises leading blue-chips such as ITC (through SUUTI) with 15.2 percent weightage, State Bank of India with 8.6 percent weightage, and Axis Bank (through SUUTI) with 7.7 percent weightage.

Bank of Baroda, Bharat Electronics, Bharat Petroleum Corp, Coal India, Engineers India, Gail India, Indian Bank, Indian Oil Corp, Larsen & Toubro, National Aluminium Co, NBCC (India), NHPC, NLC India, NTPC, Oil & Natural Gas Corp, Power Finance Corp, Power Grid Corp of India, Rural Electrification Corp and SJVN are the other constituents of the fund.

The fund consists of stocks from six sectors such as capital goods, finance, oil & gas, power, FMCG and metal, metal products and mining.

A discount of 3 per cent was offered to all categories of investors. ICICI Prudential Asset Management Company is the fund manager for the ETF.

The government has set an ambitious target of raising Rs 72,500 crore for disinvestment in the current fiscal. Of this, Rs 46,500 crore is to be raised through minority stake sale in PSU and Rs 15,000 crore from strategic sale. Another Rs 11,000 crore is to come from listing of insurance companies.