Online Stock Market Trading and Investment in India with HDFC securities

Bharat 22 ETF-FFO 2

( Managed by ICICI Prudential Asset Management Company Ltd )

Opens and Closes on October 4, 2019

Categories of Investors :-

Retail Individual Investors : Rs. 5,000/- (and in multiples of Re. 1) upto Rs 2 lacs.
Retirement Funds: Rs. 200,001/- and in multiples of Re. 1/- thereafter
Other than Retail Individual Investors and Retirement Funds: Rs. 200,001/- and in multiples of Re. 1/- thereafter

The Government has offered a discount of 3%* on Government disinvested shares to the investors of BHARAT 22 ETF during the FFO 2.

*Discount is calculated on Further Fund Offer 2 (FFO 2) Period Reference Market Price, which is determined on the basis of full day volume weighted average price on the BSE during the Non Anchor Investor FFO 2 Period for each of the index constituents of the S&P BSE Bharat 22 Index. Discount will be for all investor categories on Government disinvested shares. In the event an index constituent is purchased from open market to meet the Maximum Amount to be Raised during FFO 2 Period, no discount will be offered on such purchase of index constituent from open market.

Index Constituent

Sr. No	Company Name	Basic Industry	Weight(%)	Sr. No	Company Name	Basic Industry	Weight(%)
1	National Aluminium Co Ltd	Basic Materials	3.9	12	ITC Ltd	FMCG	14.3
		Total - Basic Materials (%)	3.9			Total - FMCG (%)	14.3
2	Oil & Natural Gas Corp Ltd	Energy	5.2	13	Larsen & Toubro Ltd	Industrials	16.7
3	Indian Oil Corp Ltd	Energy	4.2	14	Bharat Electronics Ltd	Industrials	3.1
4	Bharat Petroleum Corp Ltd	Energy	4.5	15	Engineers India Ltd	Industrials	1.0
5	Coal India Ltd	Energy	4.2	16	NBCC (India) Ltd	Industrials	1.1
		Total - Energy (%)	18.1			Total - Industrials (%)	21.8
6	State Bank of India	Finance	9.4	17	Power Grid Corp of India Ltd	Utilities	7.4
7	Axis Bank Ltd	Finance	8.4	18	NTPC Ltd	Utilities	7.7
8	Bank of Baroda	Finance	1.1	19	GAIL India Ltd.	Utilities	4.5
9	Rural Electrification Corp Ltd	Finance	1.2	20	NHPC Ltd.	Utilities	0.9
10	Power Finance Corp Ltd	Finance	0.8	21	NLC India Ltd.	Utilities	0.2
11	Indian Bank	Finance	0.2	22	SJVN Ltd.	Utilities	0.2
		Total - Finance (%)	21.1			Total - Utilities (%)	20.9

Reasons to invest

Diversified exposure : Six sectors (Basic Materials, Energy, Finance, FMCG, Industrials and Utilities). Secular growth prospects (FMCG and Utilities) + Cyclicals (Energy, Metals, Industrials). Diversification can help reduce volatility and improve risk adjusted returns.
Seeking Stability + Growth : Mix of leaders from different sectors representing balance between stability and growth.
Stock and Sector cap : Stock level cap of 15% and sector level cap of 20% applied annually at rebalancing.
Free Float Market Capitalization Method : Reduces concentration of few heavy weight companies by considering shares available for trading in the market.
Incentives offered to investors : 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 : Higher dividend yield of S&P BSE Bharat 22 Index in comparison to S&P BSE Sensex.
Reasonable Valuations : Attractive investment opportunity due to lower P/E and relatively better Earnings Growth in comparison to S&P BSE Sensex.
Government Reforms and Initiatives Earnings Potential : The constituents of the index capture the various key reforms and initiatives of the GoI like Financial Inclusion, Digital and Cashless Economy, Make in India, Goods and Services Tax, Infrastructure Reforms, etc.

*Discount is calculated on Further Fund Offer 2 (FFO 2) Period Reference Market Price, which is determined on the basis of full day volume weighted average price on the BSE during the Non Anchor Investor FFO 2 Period for each of the index constituents of the S&P BSE Bharat 22 Index. Discount will be for all investor categories on Government disinvested shares. In the event an index constituent is purchased from open market to meet the Maximum Amount to be Raised during FFO 2 Period, no discount will be offered on such purchase of index constituent from open market.

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