Chennai, NFAPost: Edelweiss Asset Management limited, a Group company of Edelweiss, has announced that the Bharat Bond NFO Tranche II has seen resounding success, receiving applications amounting to Rs 10,992 crore.
The initial NFO issue size of Rs 15,000 crore (base issue size of Rs 3,000 crore with a green shoe option of Rs 12,000 crore) was oversubscribed by over 3.7 times. 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 the subscription will be retained in both the categories, to accommodate the overwhelming demand Green shoe option in 2031 maturity is being increased from Rs 5,000 crore to Rs 6,000 crore. With approximately 40,000 applications received and considering Covid-19 restrictions on accepting physical applications, Edelweiss Mutual Fund’s Bharat Bond NFO witnessed wide retail participation with strong support from digital channels, the company said.
Ministry of Finance Secretary DIPAM Tuhin Kanta Pandey said, “The overwhelming response and over-subscription of the BHARAT Bond ETF tranche II issue shows that the product is well accepted and there is enough demand from investors for CPSE Bonds. The wide participation from investors during current environment is very encouraging. This has helped participating CPSEs in raising long term resources that will aid their capex plans in the current financial year.”
The ETF will invest in constituents of the NIFTY BHARAT Bond Indices, consisting of AAA rated public sector companies. BHARAT Bond Fund of Funds (FOF) with similar maturities were also launched for investors, who did not have demat accounts.
The BHARAT Bond ETF program aims to achieve its ultimate objective of creating a liquid yield curve for CPSE bonds and helps further agenda of development of bond markets. Eventually, BHARAT Bond ETF program will keep growing further and will provide a safe and secure investment avenue for investors across maturities and provide an easy and alternate method for CPSEs to raise funds.
Edelweiss Mutual Fund MD & CEO Radhika Gupta said, “We are very happy with the strong raise BHARAT Bond ETF NFO has seen, more importantly wide participation from various sets of investors despite challenging times. This gives us confidence to keep building BHARAT Bond ETF program and launch more ETFs in coming time with various maturities across the yield curve.”
In just six months, BHARAT Bond ETF program now manages significant amount across four ETFs launched in the last six months. Over Rs 15,000 crore worth assets are in the 10 years segment that helps in building long term investing culture amongst investors in debt funds, she added.