NMB Hybrid Fund L-1 mutual fund scheme allotment concludes; Small & Big Investors allotted 83.22 % & 15.77 % respectively; No lottery

NMB Hybrid Fund L-1 has concluded its public issue allotment today at NMB Capital, Nagpokhari, Kathmandu at 5:00 PM. NMB Hybrid Fund L-1 had issued public issue of 8 crore unit shares worth Rs 80 crore from Bhadra 26, 2073 to Bhadra 31, 2073. Though the issue was oversubscribed by 4.28 times total fund size was automatically increased by 25% as per SEBON guidelines. That ways fund size became Rs 1 arba out of which Rs 85 crore were allotted to the general public and 14% to the fund sponsor (NMB Bank Limited) and 1% to the fund manager (NMB Capital Limited). Investors who applied for up to Rs. 50 thousand or 5000 units (small investors) were allotted 83.22% of the shares applied whereas investors who applied for more than Rs. 50 thousand (big investors) got 15.77 percent of the applied shares on pro-rata basis. NMB Hybrid Fund L-1 is basically a 7 years closed-end mutual fund scheme. The mutual fund scheme is managed by NMB Capital, a wholly owned subsidiary of NMB Bank. In the public issue of NMB Hybrid Fund L1, the total amount from the small investors does not exceed the 40% of total collected amount and as a result small investors were allotted the precise amount of shares they applied for. Of the total 8 crore 50 lakh unit shares set aside for general public, 40% or 3.4  crore units shares, were put aside for retail investors and 60% or 5.1 crore unit shares, under “other investor” category. Retail investors applied for a total of 4.08 crore unit shares and those in the others category demanded 32.33 crore units shares. The shares set aside for retail investors were oversubscribed by 1.2 times and those set aside under other category were oversubscribed by 6.34 times. Of the total 22,078 applicant’s 214 were invalid applicants. Interested people were required to apply for a minimum of 100 units of share and they can apply for up to    80, 00,000 unit of shares.