September 9, 2021 | Investopaper
Mega Capital Limited has allotted the units of ‘Mega Mutual Fund-1’ to the applicants on Bhadra 23, 2078 BS [September 8, 2021]. In the public offering, 1,63,646 applicants had applied for 20,14,55,600 units. Due to huge subscription, the fund manager has increased the fund size by 25 percent to Rs 1.25 Arba.
As per the allotment module, 155,864 applicants who applied for 100 units to 350,000 units were allotted full units. Likewise, 34 applicants that applied between 5 lakh to 1 crore units received 436,330 units each. Out of these 34 applicants, 29 were allotted additional 10 units each.
‘Mega Mutual Fund-1’ IPO
Mega Capital Limited sold the units of its first mutual fund scheme named-‘Mega Mutual Fund-1’ from Bhadra 4, 2078 BS. Due to the full subscription of units, the public offering was closed on Bhadra 10, 2078 BS.
Securities Board Of Nepal (SEBON) had provided the approval for the scheme offering on Shrawan 28, 2078 BS. Mega Capital has submitted the application to the on Baisakh 22, 2078 BS for the purpose of collecting funds from the general public by selling its units.
The fund manager Mega Capital Limited sold 10 crore units of the scheme at a par value of Rs 10 per unit. Hence, the total issue size amounted to Rs 1 Arba. The scheme will be operated under ‘Mega Mutual Fund’.
Mega Bank is the promoter company of the Mega Mutual Fund. Hence, the bank purchased 15 percent or 1.5 crore units of the scheme as the seed capital. The general public can apply for the remaining 8.5 crore units worth Rs 85 crores.
‘Mega Mutual Fund-1’ is a closed ended scheme with a maturity period of 10 years. It will be listed and traded in Nepal Stock Exchange (NEPSE).
Investing in a mutual fund can be a good strategy for most investors as it offers decent returns at a low level of risk. Mutual funds are managed by professional experts and provide wide diversification.
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