NMB Capital To Close IPO Of ‘NMB Sulav Investment-II’ On Bhadra 9
August 25, 2022 | Investopaper
NMB Capital Limited is currently selling 12 crore units of its close-ended scheme named “NMB Sulav Investment-II”. The issue is open from Shrawan 26, 2079 BS. The scheme offering (IPO) was set to close on Shrawan 31, 2079 BS. However, due to under-subscription until that period, the deadline for application was extended until Bhadra 9, 2079 BS.
Also Read:
How To Buy Mutual Fund Schemes In Nepal?
Dividend Announcement By Mutual Funds In Nepal
The close-ended scheme will operate under the fund “NMB Mutual Fund”. The fund is planning to issue 12 crores units at a par value of Rs. 10. Hence, the total issue amounts to Rs. 120 crores.
As the promoter bank of the scheme, NMB Bank will purchase 14 percent of the total scheme or 1.68 crore units. Likewise, the fund manager NMB Capital will invest 1 percent or 12 lakh units as the seed capital. Hence, the general public can apply for the remaining 10.2 crore units worth Rs 102 crores.
Interested investors can apply for a minimum of 100 units and a maximum of 1.20 crore units.
Securities Board of Nepal (SEBON) had provided the approval for the issuance of units to the general public. The fund manager received the approval on Shrawan 5, 2079 BS from the regulatory body.
‘NMB Sulav Investment-II’ has a maturity period of 10 years after the allotment of units.
What is a Close-ended Mutual Fund Scheme?
Close Ended Mutual Funds issue shares to the general public through Initial Public Offering (IPOs). After that, the shares get listed on the stock exchange and investors can trade the shares of close-end funds like any other stock.
In Nepal, after the allotment of the close-ended scheme, it will be listed and traded on the Nepal stock exchange. The price an investor receives for his/her shares may be significantly different than NAV, be it higher than NAV or lower than it.
Suggested Readings:
