"NIBL Growth Fund (NGF)" Opens From Today; All information You Need To Know In One Place
Thu, Dec 22, 2022 9:39 AM on IPO/FPO News, Mutual Fund, Company Analysis, Exclusive,
Company Profile
The mutual fund scheme "NIBL Growth Fund (NGF)" is promoted by Nepal Investment Bank Limited and managed by NIBL Ace Capital.
Nepal Investment Bank Limited, previously Nepal Indosuez Bank Limited, was established in 1986 as a joint venture between Nepalese and French partners. The French partner, Credit Agricole Indosuez (holding 50%), sold its stake to a group of companies comprising Nepalese bankers, professionals, industrialists, and businessmen in April 2002. The name was then changed to Nepal Investment Bank Limited. It is promoted by a large number of institutions with the largest stake held by Rastriya Beema Company Limited along with other insurance companies, retirement funds, and investment companies. The bank’s shares are listed on the Nepal Stock Exchange. The registered office is in Durbarmarg, Kathmandu.
NIBL Capital Markets Limited was renamed to NIBL Ace Capital Limited post the merger with Ace Capital Limited on February 2018. It is licensed by the Securities Board of Nepal (SEBON) to work as an investment banker and as a merchant banker. NIBL Ace has obtained a depository participant’s license in addition to a fund manager’s license from SEBON and is currently acting in both capacities for its three MF schemes. The company reported a net profit of ~NPR 136 million in FY2021 (~115% YoY growth) over an asset base of NPR 1,872 million as of mid-July 2021.
About the issue
NIBL Ace Capital Limited is issuing the closed-ended mutual fund scheme "NIBL Growth Fund" from today i.e. on 7th Poush and close on 12th Poush, 2079. If not subscribed fully by the early closing date, the issue can be extended till Poush 21.
16 crore unit shares will be issued at a par value of Rs. 10 per unit. 19% of the total units i.e. 3.04 crore units worth Rs. 30.4 crores have been allocated to the fund promoter Nepal Investment Bank Limited whereas 1% of the total units i.e. 16 lakh units have been allocated to the fund manager NIBL Ace Capital Limited. Thus, the remaining 12.80 crore units will be allocated to the general public.
"NIBL Growth Fund" is a closed-ended fund, meaning it can be traded in NEPSE. The fund has a maturity period of 10 years. Applicants can apply for a minimum of 100 units to a maximum of 1.6 crore units.
Currently, NIBL Ace Capital is managing two closed-end funds i.e NIBL Pragati Fund (NIBLPF) and NIBL Samriddhi Fund - 2 (NIBSF2), and one open-end fund NIBL Sahabhagita Fund (NIBLSF) in the market.
| NIBL Growth Fund | |
|---|---|
| Fund Size | Rs. 1.60 Arba |
| Per Unit Price | Rs. 10 |
| Total Units | 16,00,00,000 |
| Fund Sponsor | Nepal Investment Bank |
| Fund Manager and Depository | NIBL Ace Capital |
| Seed Fund by NIBL Bank - 19% (units) | 3,04,00,000 |
| Seed Fund by NIBL Ace Capital - 1% (units) | 16,00,000 |
| General Public (units) | 12,80,00,000 |
| Nature of Scheme | Closed-ended Fund |
| Fund Maturity | 10 years |
| Minimum units to be applied | 100 |
| Maximum units to be applied | 1,60,00,000 |
| Issue open date | 7th Poush |
| Issue closing date (earliest) | 12th Poush |
| Issue closing date (latest) | 21st Poush |
| ICRA rating of NIBL Bank | [ICRANP-IR] A |
| ICRA rating of NIBL Ace Capital | [ICRANP] AMC Quality 3+ |
| Minimum units that need to be sold | 8,00,00,000 |
| Maximum units that can be extended | 20,00,00,000 |
Dividend Payout
The dividend will be paid out of realized profits in proportion to investments made on a yearly basis. The Retained earnings will be re-invested if any.
Supervisors of NGF:
| S No. | Name | Qualification |
|---|---|---|
| 1 | Mr. Bimal Prasad Koirala | P.H.D (Economics) |
| 2 | Mr. Shambhu Ram Simkhada | P.H.D (International Relations) |
| 3 | Mr. Durgesh Man Singh | P.H.D (Economics) |
| 4 | Mr. Jitendra Bahadur Rajbhandari | CA/F.C.A. |
| 5 | Mr. Raju Nepal | Post Graduate, Management |
The capital structure of NIBL Ace Capital:
| Particulars | Amount |
|---|---|
| Authorized Capital | Rs. 50 Crores |
| Issued Capital | Rs. 27 Crores |
| Paid-up Capital | Rs. 27 Crores |
Board of directors:
| S. No | Name | Position |
|---|---|---|
| 1 | Mr. Sachin Tibrewal | Chairman |
| 2 | Mr. Deepak Kumar Shrestha | Director |
| 3 | Ms. Srijana Pandey | Director |
| 3 | Mr. Rabindra Bhattarai | Independent Director |
| 4 | Mr. Ananda Kumar Bhattarai | Independent Director |
General Asset Allocation of the proposed scheme's portfolio:
| S.N. | Type of Instrument | Normal Allocation (of Net Assets) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||
| 1) | Fixed income | 30% | 30% | 30% | 30% | 30% | 30% | 35% | 40% | 40% | 85% |
| 2) | Investment in Ordinary shares | 55% | 55% | 65% | 65% | 65% | 65% | 60% | 55% | 55% | 10% |
| 3) | Operating Income | 15% | 15% | 5% | 5% | 5% | 5% | 5% | 5% | 5% | 5% |
| Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | |
Investment Avenues:
- Securities that are registered with SEBON.
- Securities called for a public offering.
- Securities that are listed in NEPSE.
- Debentures, Treasury Bills, and other instruments of the money market issued by the Government of Nepal or Government Agencies receiving full guarantee or protection of GoN or NRB.
- Bank deposits.
- Money Market Instruments.
- Other areas as prescribed by SEBON.
ICRA Rating (Nepal Investment Bank & NIBL ACE Capital):
1. Nepal Investment Bank:
ICRA Nepal has placed the issuer rating of [ICRANP-IR] A& (pronounced ICRA NP issuer rating A), assigned to Nepal Investment Bank Limited (NIBL), on ‘Watch with Developing Implications’. The rating indicates an adequate degree of safety regarding the timely servicing of financial obligations. Such issuers carry low credit risk.
Key Strengths:- Long track record; experienced directors/management team.
- Comfortable capitalization profile.
- Competitive funding profile among top-tier banks.
Key Challenges:
- Modest asset quality.
- Moderation in profitability.
- Uncertain operating environment.
2. NIBL Ace Capital:
ICRA Nepal has reaffirmed the fund management quality rating (FMQR) of [ICRANP] AMC Quality 3+ (pronounced ICRA NP asset management company quality three plus) to NIBL Ace Capital Limited (NIBL Ace or the company). The rating indicates an adequate assurance of management quality.
Key Strengths:
- Decent fund performance so far.
- Fair track record in fund management.
- Strong ownership profile.
- Experienced fund supervisors and management team.
- Regulatory support for the development of the MF industry and financial markets.
Key Challenges:
- A volatile operating environment could impact NAV trajectory.
- Sectoral concentration risks developing the stage of the mutual fund industry.
- Developing stage of the mutual fund industry with moderate attraction among investors.
- Limited investment diversification avenues so far; are expected to gradually improve.
Click here to view the prospectus
Click here to view the offer letter
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