Bharat Bond ETFs, India’s first corporate bond ETFs, got listed on stock exchanges today. Bharat Bond ETF – April 2023 traded between ₹1001 to ₹1,000 on NSE today while the Bharat Bond ETF – April 2030 between ₹1,004.90 and RS 1,000.40, as compared to the offer price of ₹1,000 in both the issues.
The issue had garnered ₹12,400 crore from its maiden offer that had opened for subscription on December 12 and closed on December 20. The funds raised would be utilised for capex of PSUs. The base size of the issue was ₹7,000 crore.
The exchange-traded fund (ETF) will invest only in AAA-rated bonds of public sector companies and have target maturity structures.
Bharat Bond ETF – April 2023 with a 3-year maturity follows the Nifty Bharat Bond Index-April 2023, while Bharat Bond ETF – April 2030 with a 10-year maturity will follow the Nifty Bharat Bond Index-April 2030.
Participation by about 55,000 retails investors was the highlight of this issue, DIPAM Secretary Tuhin Kanta Pandey had said.
Investors who hold these ETFs for over 3 years will get the benefit of capital gains with indexation. Those who want to exit before the maturity can sell on exchanges.
The ETF will invest in constituents of the Nifty Bharat Bond Indices, consisting of public sector companies.
A Bharat Bond Fund of Funds (FOF) will also be launched from tomorrow for investors who do not have demat accounts. (With Agency Inputs)
Source: livemint
