Bharat Bond NFO (New Fund Offering) issue in its second Tranche got subscribed 3.7 times. Edelweiss Asset Management which is managing the issue said, “Bharat Bond NFO Tranche II has been a resounding success, receiving applications amounting to Rs 10,992 crore”.
The total issue size of the NFO was pegged at Rs 15,000 crore in which the base issue size and greenshoe option were at Rs 3,000 crore and Rs12,000 crore respectively.
Edelweiss added, “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.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”.
According to Edelweiss, “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”.
It added, “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”.