The Union government raised Rs 10,000 crore from an additional offering of Bharat-22 exchange-traded fund (ETF) on February 14.

The additional ‘on-tap’ offering of Bharat-22 ETF was opened for a single day with a base issue size of Rs 3,500 crore and an option to retain oversubscription.

The issue was oversubscribed 10 times and received bids for Rs 4 lakh crore.

“The Bharat-22 ETF issue received overwhelming response from all categories of investors, including retail investors. The government has decided to retain approximately Rs 10,000 crore as its divestment proceeds,” the finance ministry said.

The proceeds from the ETF sale will help the government move towards meeting the Rs 80,000 crore disinvestment target set for the current fiscal.

With the successful Bharat-22 ETF offering, the government has mopped up approximately Rs 46,000 crore by way of disinvestment.

The government has so far raised Rs 22,900 crore through the Bharat-22 ETF. While Rs 14,500 crore was raised in November 2017, another Rs 8,400 crore was raised in June 2018.

The central public sector enterprises that are part of the ETF include ONGC, IOC, SBI, BPCL, Coal India and Nalco. Other constituents include Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL and NLC India. Only three public sector banks - SBI, Indian Bank and Bank of Baroda - figure in the index.

Also, the government’s strategic holding in Axis Bank, ITC and L&T, held through Specified Undertaking of Unit Trust of India (SUUTI), has been put in the ETF basket.

This is the second ETF offering by the government in the current fiscal.

Last November, the government had raised Rs 17,300 crore through a follow-on offer of another exchange traded fund - CPSE ETF, which comprises shares of 11 public sector enterprises. This was the biggest-ever fund-raising from an ETF domestically.