Edelweiss Mutual Fund to launch third tranche

 Edelweiss Mutual Fund to launch third tranche of ‘BHARAT Bond ETF’ on 3^rd December 2021 

 

Highlights:

·         Edelweiss MF BHARAT Bond ETF will be launched with maturity date of 15^th April, 2032, and is aiming to raise Rs. 1,000 cr. as the base issue size with additional green shoe option

·         Edelweiss MF BHARAT Bond ETF AUM stood at Rs 36,359 Cr. in the end of October 2021

·         Post the launch of Edelweiss MF BHARAT Bond ETF in 2019, the total AUM for Passive Debt category is grown to around Rs. 50,000 cr. as on October 2021

·         Edelweiss MF BHARAT Bond ETF kicked-off the Passive Debt Category in India in December 2019. Since then, various other AMCs have launched 9 new schemes in this category, but Edelweiss has been successful in retaining its leadership position with 80% market share.

 

Edelweiss Asset Management today announced the launch of the third tranche of BHARAT Bond ETF starting from 3^rd December, after the successful launch of 4 ETFs in last 2 years. The BHARAT Bond ETF program is an initiative of the Government of India, from the Department of Investment and Public Asset Management and the latter has given the mandate to Edelweiss Mutual Fund to design, launch and manage the product.

 

This new BHARAT Bond ETF and BHARAT Bond Fund of Fund (FOF) series will mature on 15^th April 2032. NFO will start from 3^rd December 2021 and end on 9^th December 2021. Through the launch of this new series in third tranche, Edelweiss Mutual Fund proposes to raise an initial amount of Rs. 1,000 crores with an open green shoe option. 

 

Tuhin Kanta Pandey, Secretary, DIPAM, Ministry of Finance said, “BHARAT Bond ETF program has achieved some important objectives that were envisioned while creating the blueprint of this program. It has provided aggregate savings in borrowing cost for participating CPSEs/CPSUs/CPFIs. It has provided easy access to investors into bond markets, especially retail investors who are looking alternative to Fixed Deposit. Further, adequate Liquidity on the exchange is encouraging investor participation and helping in deepening the bond markets. BHARAT Bond ETF program has led to promising impact on the overall Debt Passives landscape in India with many other AMCs also launching similar target maturity ETFs and Index Funds in the recent times. The organic increase in AUM of existing BHARAT Bond ETFs in the last 2 years resembles investor’s confidence in the product and we are very happy with its overall impact on the market.”

 

Radhika Gupta, CEO, Edelweiss Mutual Fund said, “We are excited to see the growth of Passive Debt category in India, post the launch of Edelweiss MF Bharat Bond ETFs. Around 20 new passive debt funds have been filed and 9 passive debt funds have been already launched by different AMCs post the launch of BHARAT Bond ETF in Dec 2019. The total AUM of this category has reached around Rs. 50,000 cr. as on October 2021 and Edelweiss AMC is a leader in this space with more than 80% market share. With this new launch of BHARAT Bond ETF, we now have five maturities on the yield curve – 2023, 2025, 2030, 2031 and 2032 which will help investors to choose the right maturity according to their needs. We are happy to see a healthy demand from investors for these ETFs in the current environment where safety is paramount.”

 

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 will also be launched for investors, who do not have Demat accounts. The BHARAT Bond ETF AUM stood at Rs 36,359 Cr. in the end of October 2021.

Shriram Capital appoints Dr. K P Krishnan as the

Shriram Capital appoints Dr. K P Krishnan as the Chairman of the board

Shriram Capital Limited (SCL), the holding company for the financial services and insurance entities of the Shriram Group, announces the appointment of Dr. K P Krishnan as the Chairman on the board of the company. Dr. Krishnan has assumed his role as the Chairman effective February 19, 2021.

Dr. Krishnan comes with a distinguished record and diverse experience of a little under four decades with the Government. In his long career in the IAS, Dr. Krishnan has held several key positions - Secretary, Ministry of Skill Development and Entrepreneurship (2017-19), Special/Additional Secretary, Department of Land Resources, Ministry of Rural Development (2014-17); Additional Secretary, Department of Economic Affairs (DEA), Ministry of Finance (2013-2014) and Secretary, Prime Minister’s Economic Advisory Council (2010-2012) and Joint Secretary Department of Economic Affairs Ministry of Finance. In addition, he served in key positions in the Government of Karnataka and the office of the Executive Director World Bank Group Washington DC. During his stint in the  DEA, Dr. Krishnan was closely involved with and initiated many of the most profound and extensive reforms to market functioning, instruments, and regulatory structure in the financial sector.

Dr. Krishnan has authored several reports on the Indian financial sector and published many academic papers on land, urban development, and financial sector issues. He is at present the IEPF Chair Professor of Economics at the National Council of Applied Economic Research (NCAER) New Delhi. He is also the Chairperson of various committees of the Ministry of Corporate Affairs and IFSCA of the Ministry of Finance.

Dr. K P Krishnan has an FPM (Ph.D.) in Economics from IIM Bangalore. Prior to that, he completed his under graduation in Economics from St. Stephens College and Law from the Campus Law Centre University of Delhi.

On this occasion of the appointment on the board, R. Thyagarajan, Founder, Shriram Group, said, 'It gives me immense pleasure to welcome Dr. Krishnan on Shriram Capital's board. We are very confident that his leadership will have a significant impact on the growth and direction of our businesses.”

Welcoming his joining the board, D V Ravi, Managing Director, Shriram Capital Limited, added, “His versatile experience across sectors and deep understanding of the financial services sector will provide a major thrust in the vision and growth of the Shriram Group.”

 On his appointment, Dr. K P Krishnan said, 'I am delighted to accept this new role in the Shriram family. I look forward to engaging with the leadership team of the Group and making a difference with the implementation of appropriate strategies that will enable the Group to grow and establish newer milestones.”

Edelweiss Mutual Fund’s ‘BHARAT Bond’

Edelweiss Mutual Fund’s ‘BHARAT Bond’ Tranche II

oversubscribed 3.7 times

                      

Highlights:

• BHARAT Bond Tranche II NFO received bids/applications worth around Rs. 11,000 Crores oversubscribed by more than 3.7 times against the base issue size of Rs. 3,000 crores
• Overwhelming response in both 5 & 11 years category, both have been oversubscribed
• Strong investor participation with around 40,000 applications received

Edelweiss Asset Management limited, a Group company of Edelweiss today announced that the Bharat Bond NFO Tranche II has seen resounding success, receiving applications amounting to Rs. 10,992 crores.

The initial NFO issue size of Rs. 15,000 crores (base issue size of INR 3,000 crores with a green shoe option of INR 12,000 crores) was oversubscribed by over 3.7 times. The 2025 maturity date category received applications for Rs. 4,531 crores, an oversubscription of 2.3 times and the 2031 Maturity category received applications for Rs. 6,461 crores 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 crores to Rs. 6,000 crores. 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.

Tuhin Kanta Pandey, Secretary DIPAM, Ministry of Finance 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.”

Radhika Gupta, MD & CEO, Edelweiss Mutual Fund 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 last six months. Over Rs. 15,000 cr worth assets are in the 10 years segment which helps in building long term investing culture amongst investors in debt funds.”

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.

*Information is subject to complete realisation of cheques.

About Edelweiss Asset Management Limited (EAML)

EAML is a part of the Investment & Advisory business of Edelweiss Group. EMAL remains one of the fastest growing and youngest AMCs in India, with an AUM of 24,471 crores. It offers a robust platform to a diversified client base across domestic and global geographies.

The Mutual Fund product suite of the company encompass the entire risk return spectrum and is designed to offer the best opportunity for investment growth in Indian & global asset classes. EAML also provides world class knowledge platforms for its partners and investors to keep them updated. The company provides the best digital experience to investors and partners through continuous innovation and cutting-edge technology. For more information please visit: www.edelweissmf.com

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