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BHARAT 22 ETF FFO 2 [October 04, 2019] - Detail Review

Published on Wednesday, September 25, 2019 by Chittorgarh.com Team

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BHARAT 22 ETF FFO 2 [October 04, 2019] - Detail Review

BHARAT 22 ETF (4rd tranche) Public Offer

The 4th tranche of Bharat 22 ETF public offer opens and closes on Oct 4th, 2019 for retail investors. 25% is reserved for each category (Anchor, Retail, Retirement Fund & FPI/HNI).


Discount to Retail Investors

3% discount is offered in all the investor's categories including retail, HNI and institutional investors.


BHARAT 22 Exchange Traded Fund (ETF) tracks the BSE BHARAT 22 Index. BSE BHARAT 22 Index is designed to measure the performance of 22 select companies disinvested by the central government of India. It consists of Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSB) and strategic holdings of SUUTI (Specified Undertaking of the Unit Trust of India).

  • Stock weighting mechanism : Free Float Market Capitalization Weighting Method
  • Weight caps: Stock level cap: 15%; Sector level cap: 20% applied at annual rebalancing
  • Additions/ deletions to the index: As per GoI notification on their website.

BHARAT 22 ETF Detail

Type

An Open Ended Exchange Traded Fund investing in S&P BSE Bharat 22 Index

FFO 2 Period

Anchor Investor: October 3, 2019 | Non-Anchor Investor: October 4, 2019

Minimum application amount

RII : ₹5,000 (and in multiple of ₹1) upto ₹2 lacs
RFs : ₹2,00,001 and in multiples of ₹1 thereafter
QIBs/NIIs : ₹2,00,001 and in multiples of ₹1 thereafter

Entry/ Exit Load

Nil

Liquidity

To be listed on BSE Ltd. and National Stock Exchange of India Ltd.

Underlying / Benchmark

S&P BSE Bharat 22 Index

ISIN

INF109KB15Y7

NSE Symbol & BSE Scrip ID

ICICIB22

Note: This product is suitable for investors who are seeking Long term wealth creation.


Advantages of Bharat 22 ETF

  • Low Fee: The scheme charges low expense ratios as compared with an actively managed scheme.
  • Low Cost: Gain exposure to 22 stocks of government enterprises with an amount as low as ₹5,000.
  • Diversification: The Bharat 22 ETF's portfolio diversified across six sectors - basic materials, energy, finance, FMCG (Fast-Moving Consumer Goods), industrials and utilities.
  • Bluechip stocks: The portfolio comprises stocks of some of India's largest public sector enterprises.

Reasons to invest in Bharat 22 ETF

  • Diversified Exposure to leaders across 6 sectors representing balance between stability and growth
  • The Government has offered a discount of 3%* on Government disinvested shares to the investors of BHARAT 22 ETF during the FFO 2.
  • Attractive Dividend Yield and reasonable valuations
  • Government Initiatives and Reforms may benefit earnings potential of index constituents
  • Highly liquid index - more than 97.50% of index constituents are available under Futures & Options segment.

Frequently Asked Questions BHARAT 22 ETF

  • What is BHARAT 22 ETF?

    Government of India (GOI), as part of its disinvestment programme, approved the setting up of Exchange Traded Fund (ETF) comprising shares of listed Central Public Sector Enterprises (CPSE), some of the strategic holding of Specified Undertaking of Unit Trust of India (SUUTI) and other corporate entities.
    ICICI Prudential Asset Management Company Limited (ICICI Prudential AMC/the AMC) was appointed to create, launch and manage the ETF. On August 4, 2017, the Government announced a new ETF by the name "BHARAT 22 ETF" and also, announced the index for BHARAT 22 ETF. BHARAT 22 ETF will invest in the equity securities of the underlying constituent companies of "S&P BSE Bharat 22 Index" in similar composition and weightages as they appear in the said Index.

  • Where will BHARAT 22 ETF invest in?

    BHARAT 22 ETF shall invest in equity securities of the underlying constituent companies of "S&P BSE Bharat 22 Index", which is also the Benchmark Index of the BHARAT 22 ETF.

  • What are the broad highlights of S&P BSE Bharat 22 Index?

    There are 22 stocks under the S&P BSE Bharat 22 Index which comprises shares of Central Public Sector Enterprises (CPSE), Public Sector Banks and some of the strategic holding of Specified Undertaking of Unit Trust of India (SUUTI). S&P BSE Bharat 22 Index is well diversified index across six sectors. The stock level capping is at 15% and sector capping is at 20% applied annually at rebalancing.

    To know more about the index constituents and for more details, please visit:

    https://www.bseindia.com/sensex/code/100/

  • Will there be separate Application form for Bharat 22 ETF Additional Offer?

    Yes, there will be separate Application form for Bharat 22 ETF Additional Offer which will be available on the website of AMC.

  • Is there any discount to investors?

    A 3% Discount for all investor categories on Government disinvestment shares. The discount offered by GOI may not be a discount to the closing market price of the underlying shares of S&P Bharat 22 Index on the Additional Offering Period/ Allotment Date.

    Discount is calculated on Additional Offering Period Reference Market Price which is determined on the basis of full-day volume-weighted average price on the BSE during the additional offering period for each of the index constituents of the S&P BSE BHARAT 22 Index. Discount will be on shares to be disinvested by the Government of India. In the event an index constituent is purchased from open market to meet the Maximum Amount to be raised during an additional offering period, no discount will be offered on such purchase of index constituent from the open market. For more details refer notice available on website

  • What is the Total Expense Ratio of BHARAT 22 ETF?

    Currently, the expense ratio of BHARAT 22 ETF is up to 0.0095% p.a. of daily net assets of the scheme.

    Please refer to Scheme Information Document (SID) for more details.

  • Do we have Direct or Regular Plan option in BHARAT 22 ETF?

    Currently, there are no separate Plans/options under BHARAT 22 ETF.

  • Will the Scheme declare dividend or it will be growth scheme?

    The Scheme can declare dividend subject to availability of distributable surplus and approval from the Trustees of the Scheme.

  • What will the tax treatment be in case of short term capital gains (STCG) and long term capital gains (LTCG)?

    Taxation for this ETF will be like that of equity shares or equity mutual funds.

  • How can I make application/subscription in BHARAT 22 ETF during the Additional Offering Period?

    Applicants may submit the physical application at designated Investor Service Centres of ICICI Prudential Asset Management Company Limited or Computer Age Management Services Pvt. Ltd. (CAMS).

    Additionally, the below mentioned online modes will be available:

    • ICICI Prudential AMC or ICICI Prudential Mutual Fund website
    • IPRUTOUCH App
    • NSE MFSS
    • BIMF (BSE IBBS PLATFORM)
    • NMF II platform of NSE
    • e-ETF under web based NSE e-IPO platform
    • MF Utility
    • CAMSONLINE

  • Is there any lock-in period under BHARAT 22 ETF Additional Offering Period?

    There is no lock-in period for Investors.

  • Who can apply and how much one can apply in BHARAT 22 ETF during the Additional Offering Period?

    Investors who hold a demat account can apply for units of the ETF during the Additional Offer period. The different categories of investors with respective application amounts under each category is provided in the below table:

    Type of Investors

    Description

    Investment Amount

    Retail Individual Investors (RII))

    Natural persons including NRI, sole proprietorship concern and HUF represented by Karta

    Rs.5,000 and in multiples of ₹1 thereafter up to ₹2,00,000 per investor.

    Retirement Funds (RF)

    Any private or public trust, or any other entity, set up with the objective of making investments for the benefit of retirement or social security benefits for employees or workmen in the private or public sector and includes pension funds, gratuity funds, provident funds, annuity funds, deposit-linked insurance funds or superannuation funds, whether regulated by any authority or not.

    ₹2,00,001 and in multiples of Re.1 thereafter.

    Other than Retail Individual Investors and Retirement Funds

    All investors who are neither Retail Individual Investors nor Retirement Funds.

    ₹2,00,001 and in multiples of Re.1 thereafter.

  • Can I submit multiple applications?

    An Investor ideally should submit one application. If multiple applications are submitted by an investor/ investor(s) (with different holding pattern) the applications will be clubbed on first/ sole holder PAN for determining investor category (i.e. Retail Individual). E.g. an Individual Investor A, submits two applications of Rs.1,50,000 each with two different demat accounts with holding pattern as A,B and A,C,B. The total application under Investor A's PAN will be considered as ₹3,00,000, thus he will be categorized as "Other than Retail Individual Investor and Retirement Funds" will not receive the allotment under Retail Individual Investor category.

  • Do I need to pay any transaction charges to the distributor through whom I am applying in the Additional Offering Period?

    In case the Distributor has „opted in„ to receive Transaction Charges, Rs 150 (new investor in mutual fund) & Rs 100 (existing investor) will be deducted if the Subscription amount is Rs.10,000 & above.

    Further note that transaction charges will be applicable for transactions routed from Physical, ICICI Prudential MF Online portal, Channel Partners and stock exchange platforms through ARN-Holders (Mutual fund distributors) if the distributor is in „Opt in' list and Transaction charges will not be applicable for transactions routed from stock exchange platforms routed through stock brokers even if the broker is in „Opt in' list.

  • Can I register nominee for this investment?

    Mode of holding for BHARAT 22 ETF is compulsorily dematerialized. The allotment will happen in demat mode. Hence, the nomination details registered in your demat account will be applicable to this investment.

  • Will there be any Folio No. for future reference?

    Since the ETF units are compulsorily held in Demat mode and ongoing transactions happen through Secondary market, there will be no MF Folio number. For all future queries on allotment, applicants

    need to refer the Demat account number and 1st/ Sole Holder's PAN which were used in the Additional Offering Period.

  • I don't have a demat account, but I want to apply for this ETF. Is it mandatory to have a demat account to apply for this Additional Offering Period? Can I apply for it like I apply for any other mutual fund?

    Demat account is mandatory to apply for this ETF.

  • Is it mandatory to apply only through cheque and not ASBA?

    ASBA facility is not available. You can submit Cheques /Demand drafts, Transfer requests/ RTGS and NEFT along with the application form or invest online through your broker's trading platform to apply for this ETF.

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21 Comments

Satish
21. Satish  Oct 12, 2019 16:37 Reply
Effective discount rate : 2.2 % only
Cheater government
Rajendrasethia
20. Rajendrasethia  Oct 12, 2019 13:42 Reply
Allotted 5939 units @33.6728
Ram
20.1. Ram  Oct 12, 2019 15:34
Thanks for update.
Alloted when ?
Today ?
Excess amount refunded in your bank account ?
This time admin is so slow.
Ram
20.2. Ram  Oct 12, 2019 15:51
Got it.
Checked and Verified.
Thanx again.
How do you come to know?
Have you received any message or email ?

https://www.icicipruamc.com/InvOnline/app/aspx/frmBharatETF.aspx
Aloor Enasu Kureed
19. Aloor Enasu Kureed  Oct 11, 2019 17:23 Reply
Latest position of ETF allotment details
Harish
18. Harish  Oct 11, 2019 17:04 Reply
I bought 5000 shares for 5000 Rupees.
Can any one please tell what may be approx listing price for 1 share of Bharat 22 ETF
Also please tell what is listing date.
VINOD KUMAR
17. VINOD KUMAR  Oct 11, 2019 14:39 Reply
subscribe HOW MANY TIMES ???????????? PLZ REPLY
KALAIYARASAN
16. KALAIYARASAN  Oct 10, 2019 16:27 Reply
WHAT IS ALLOTMENT DATE IN OUR ACCOUNT PLEASE REPLY
AJAY
16.1. AJAY  Oct 10, 2019 17:24
ARE BHAI TUM LOG NICHE KA MSSG PADHA KARO PHIR POST KARO KYA EK EK MSSG SAB DALTE REHTE HO
VINOD KUMAR
15. VINOD KUMAR  Oct 10, 2019 14:31 Reply
what is the allotement price? anyone here!!!!!!!!!!!!!!!!!!!!
Henil patwa
15.1. Henil patwa  Oct 10, 2019 15:01
AROUND 33.5-33.6
ROMILPATWA
15.2. ROMILPATWA  Oct 10, 2019 15:39
33.5-33.6
Chetan Tanawala
14. Chetan Tanawala  Oct 10, 2019 09:32 Reply
allotment date of BHARAT ETF22 4 tranche
AJAY SHARMA
14.1. AJAY SHARMA  Oct 10, 2019 13:18
ARE BHAI NICHE LIKHA THO HAI PADHO
Henil patwa
13. Henil patwa  Oct 10, 2019 08:54 Reply
ALLOTMENT WILL BE DONE ON FRIDAY OR MONDAY
Rocky
12. Rocky  Oct 9, 2019 15:57 Reply
Please someone update what is allotment date?
akbhavsar
11. akbhavsar  Oct 9, 2019 15:16 Reply
what is the allotement price?
Anish patwa
10. Anish patwa  Oct 9, 2019 13:52 Reply
WHEN IS THE ALLOTMENT OF BHARAT22ETF AND LISTING DATE CAN ANYONE TELL
RaGa
9. RaGa  Sep 27, 2019 12:51 Reply
Beware :
CPSE ETF still trading in discount even after 3 months.
It is also offered at 3 % discount.
BIG BIG Avoid to all PSU ETFs.
kem cho
9.1. kem cho  Oct 7, 2019 17:15
i always buy at lowest price and sell at highest price.
anuCHEAT patel
9.2. anuCHEAT patel  Oct 7, 2019 18:03
always apply in PSU only.
rakesh kumar jain
8. rakesh kumar jain  Oct 5, 2019 18:23 Reply
Has date for allotment been declared? If yes, what is the date?
aniket child msg
8.1. aniket child msg  Oct 7, 2019 17:00
12-10-19
SEPTArshi
8.2. SEPTArshi  Oct 7, 2019 17:49
on 12th it is saturday.dont try to become septa or messenger of god.dont post kidding childish message.
Tinkerbell
7. Tinkerbell  Oct 3, 2019 18:50 Reply
IPO Mentor IPO Mentor (500+ Posts, 1300+ Likes)
Is there any activities of gray market about full application??
ipo commander
7.1. ipo commander  Oct 7, 2019 17:10
no gray market only grey market
Shalibhadra shah
6. Shalibhadra shah  Oct 4, 2019 00:24 Reply
Hello.. is there any grey market premiym in Bharat Etc ,???
aao guru harita
6.1. aao guru harita  Oct 7, 2019 17:05
200 0n 200000
sanjay
5. sanjay  Oct 7, 2019 10:03 Reply
Pls Declared Allotment Date Bharta 22
Ankur kejriwal
5.1. Ankur kejriwal  Oct 7, 2019 12:00
PSU's are scam. Stay away from them. Take this valuable advice from here for free. Govt is just off loading its stake in inefficient PSU's.
eagle egg
5.2. eagle egg  Oct 7, 2019 16:55
on 11th.
sabko anda milega.
haa , allotment mai nahi , listing mai.
Manish sharma
4. Manish sharma  Oct 4, 2019 10:21 Reply
This time Retail investor should reply to Govt. By not applying for single Share to show the intention of "aam public ko lootna bandh karo Ka...….O"
SUNIL KUMAR AGRAWAL
4.1. SUNIL KUMAR AGRAWAL  Oct 4, 2019 11:05
please send link to download ETF form
Ankur kejriwal
4.2. Ankur kejriwal  Oct 7, 2019 12:03
Totally agree. Retailers should all together avoid all PSU's disinvestment stake to give a clear indication to govt.
VINOD KUMAR
3. VINOD KUMAR  Oct 5, 2019 12:07 Reply
allotment date ? plz and allotment price ?? retail investors
kings vinod
3.1. kings vinod  Oct 5, 2019 17:41
allotment date will be updated by forum admin by the end of week.
allotment price may be near 33.65
Ankur kejriwal
2. Ankur kejriwal  Oct 3, 2019 14:56 Reply
Hi everyone, Just check last CPSE ETF FFO 5 performance before applying for Bharat 22 ETF. Its allotted price was 24.69(after 3% discount) & since listing it never touched that price. It went below till 21.25 with 1 month. People incurred huge losses in it. So, my advice stay away from all disinvestment scheme as govt is only dumping its stake in inefficient PSU's on people.
Avoid PSU
2.1. Avoid PSU  Oct 3, 2019 21:28
1 Like from me.:)
Tinkerbell
1. Tinkerbell  Sep 27, 2019 21:15 Reply
IPO Mentor IPO Mentor (500+ Posts, 1300+ Likes)
Is any gray rate for full application??
LAXMAN PRASAD GUPTA
22.1. LAXMAN PRASAD GUPTA  Sep 28, 2019 18:33
THERE MUST BE SOME PREMIUM IN BHARAT22
bharat
22.2. bharat  Sep 29, 2019 22:18
no grey premium in bharat because only 3 percent discount



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