India’s first bond exchange-traded fund (ETF) Bharat Bond ETF has collected approx Rs. 12,000 crores with 1.7 times of oversubscription. The amount, which is subject to further update has been estimated at the time of closing the subscription on Friday.
DIPAM Secretary Tuhin Kanta Pandey took to microblogging site Twitter to inform the oversubscription and total collected amount.
India’s first corporate Bond ETF, Bharat Bond ETF, has received a great response from investors across different segments.The issue was oversubscribed approximately 1.7 times, collecting about INR 12000 crores. Information is subject to further updates. pic.twitter.com/udZ64LX5Gm
— Secretary, DIPAM (@SecyDIPAM) December 20, 2019
He twitted, ‘India’s first corporate Bond ETF, Bharat Bond ETF, has received a great response from investors across different segments. The issue was over-subscribed approximately 1.7 times, collecting about Rs 12,000 crore. Information is subject to further update’.
The base size of the issue was Rs 7,000 crore. The fund will invest only in AAA-rated bonds of public sector companies, targeting the maturity structures. The ETF with a 3-year maturity will invest in constituents of the Nifty Bharat Bond Indices, consisting of public sector companies.
Nifty Bharat Bond Index-April 2023 was on 6.69 per cent and the Nifty Bharat Bond Index-April 2030 on 7.58 per cent as on 5 December 2019.
The Funds of Funds (FOF) of Bharat Bond is also being launched for investors who do not have demat accounts.