All subscriptions will be retained in both categories to accommodate the overwhelming demand
The new fund offering of Bharat Bond ETF tranche II has received a positive response from investors as the issue was subscribed 3.7 times.
"Bharat Bond NFO Tranche II has been a resounding success, receiving applications amounting to Rs 10,992 crore," said Edelweiss Asset Management, which has managed the issue.
The base issue size was Rs 3,000 crore and the greenshoe option was Rs 12,000 crore, taking the total issue size of the NFO to Rs 15,000 crore.
"The 2025 maturity date category received applications for Rs 4,531 crore, an oversubscription of 2.3 times, and the 2031 maturity category received applications for Rs 6,461 crore, an oversubscription of 6.5 times," Edelweiss said in its statement.
All subscriptions will be retained in both categories to accommodate the overwhelming demand. The greenshoe option with 2031 maturity is being increased to Rs 6,000 crore from Rs 5,000 crore, it added.
With approximately 40,000 applications received and considering COVID-19 restrictions on accepting physical applications, Bharat Bond NFO witnessed wide retail participation with strong support from digital channels, Edelweiss said.
The ETF will invest in constituents of the Nifty Bharat Bond indices consisting of AAA rated public sector companies.
The Bharat Bond ETF programme aims to achieve its ultimate objective of creating a liquid yield curve for central public sector enterprise (CPSE) bonds and further development of the bond market, Edelweiss added.