On July 20, The second tranche of Bharat Bond ETF (exchange-traded fund) was over-subscribed 3.7 times, collected Rs 10,992 crore. The ETF was launched on July 14 and closed on July 17 with a base issue size of Rs 3,000crore and, the green-shoe option of Rs 12,000 crore, taking the total size to Rs 15,000crore.
Edelweiss Asset Management, in a statement, said, “The Bharat Bond NFO Tranche-II has seen resounding success, receiving applications amounting to Rs 10,992crore.” It has received over 40,000 applications and considering restrictions on accepting physical applications due to Covid-19. Edelweiss Mutual Fund’s Bharat Bond ETF NFO witnessed wide retail participation in ETF, with strong digital support across channels.
The over-subscription of Bharat Bond ETF Tranche-II issue shows there is enough demand from investors for CPSE Bonds. “This has helped to participate CPSEs in raising long term resources that will aid their CAPEX plans in the current financial year,” said Tuhin Kanta Pandey, Secretary Department of Investment & Public Asset Management (DIPAM).
Bharat Bond ETF offers two maturity periods of 5 years in April 2025 and 11 years in April 2031 respectively. Thus, giving investors to choose based on their investment horizon. Along with this, an investor can buy or sell units through the Edelweiss AMC as a Fund of Fund or can exchange it any time during trading hours.
The Tranche-I of Bharat Bond ETF had fetched about Rs 12,400 crore from its debut offer which was oversubscribed 1.7 times in December 2019.
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