NMB’s mutual fund fully subscribed; likely to be oversubscribed by over 2 times by Monday

ShareSansar, Sept 21:

The new mutual fund, NMB Sulav Investment Fund-I, which opened for the public for subscription from September 9, has received overwhelming response from the investors.

The mutual fund scheme has already drawn more than Rs 60 crore by third day, today, which means that it has been fully subscribed, according to Chief Operating Officer of NMB Capital Limited Kamal Nepal. NMB Capital is closing the IPO tomorrow.

“We are fully satisfied with the response our first mutual plan scheme has received from investors across the country. Besides overwhelming response from general investors, we have also received very good response from institutional investors,” Nepal told ShareSansar this afternoon. “Going by the trend, we expect the scheme to be oversubscribed by more than 2 times.”

NMB Sulav Investment Fund-I is promoted by the NMB Bank and operated by Bank’s subsidiary NMB Capital Limited.

The investors can collect and submit the form from 29 different collection counters of the NMB Bank across the country and NMB Capital office itself.

Likewise, investors from the districts where there is no any counters to collect the form can also apply through the post offices by enclosing the A/c payee draft issued on the name of NMB Capital Ltd.

NMB Sulav Investment Fund – I is a closed end fund with an initial corpus of Rs 60 crore, and may exceed up to Rs 75 crore. According to the NMB Capital’s notice, an investor can apply up to 100 units of the shares while 6,000,000 units is the maximum limit.

The mutual fund is being floated at the face value of Rs 10. The investors have to pay Rs 10 per unit while submitting the form.  NMB Sulav Investment Fund has received [ICRANP] AMC Quality 3 (AMCs), which is a very good credit rating.

Out of total 60,000,000 units, NMB Capital has allocated 9,000,000 units or 14 percent of the total sold units for the NMB Bank while 1 percent has been allocated for the NMB Capital.

Remaining 51,000,000 is for the public.

Stock analysts believe that the entry of mutual fund helps to stabilize the volatility of the stock market.

With NMB Sulav Investment Fund, there are now four mutual funds in the market,  including two operated Siddharth Capital Limited (SIG-1 and SEOS), and one managed by Nabil Investment Banking Limited (NBF-1).