Public Offering of Subha Laxmi Kosh Opens From Today; All information You Need To Know In One Place
Thu, Aug 4, 2022 4:34 AM on Mutual Fund, Company Analysis,
Company Profile
The mutual fund scheme "Subha Laxmi Kosh (SBLK)" is promoted by Laxmi Bank and managed by Laxmi Capital Market.
Laxmi Bank Limited (LBL) is the 16th commercial bank in Nepal, founded in 2002 A.D. In 2004 Laxmi Bank merged with HISEF Finance Limited, a first-generation finance company. This is the first merger in Nepali corporate history. In 2016, the Bank also acquired Professional Diyalo Bikas Bank, a regional development Bank. Laxmi Bank is a Category ‘A’ Financial Institution and re-registered in 2006 under the Banks and Financial Institutions Act of Nepal. The Bank’s shares are listed and actively traded in the Nepal Stock Exchange. The bank also promoted a life insurance company known as Prime Life Insurance in 2007 and holds 15% shareholding stake in it.
Laxmi Capital Market Limited (LAXMICAP) is a wholly owned subsidiary of Laxmi Bank Limited. It has obtained license from Securities Board of Nepal (SEBON) to be engaged in merchant banking activities such as Initial Public Offering (IPO), Underwriting of Securities, Portfolio Management Services, Registrar to Share, etc. The objective of the company is to provide an entire gamut of merchant banking services. It operates independently under professional management with strategic support from the Board and the parent company. The company aims to raise the industry standard by incorporating best practices in capital market activities and embracing modern technologies to augment the way products and services are offered to its customers.
About the issue
Laxmi Capital sets to open a new open-end mutual fund scheme “Subha Laxmi Kosh (SBLK)” worth Rs. 2.5 Arba.
The opening date of this fund is today i.e 19th Shrawan and close on 23rd Shrawan, 2079 at the earliest. If the application is not adequately subscribed the closing date will be extended up to Bhadra 02.
1.75 crore units will be issued at a par value of Rs. 10 per unit to the general public. 15% of the total 5 crore units i.e. 75 lakh units worth Rs. 7.5 crores have been allocated to the fund promoter Laxmi Bank Limited. Out of the remaining 4.25 crore units, 1.75 crore units will now be issued to the general public.
Applicants can apply for a minimum of 100 units to a maximum of 50 lakh units. This fund is managed by Laxmi Capital Market Limited and sponsored by Laxmi Bank. This fund is not tradable on Nepal Stock Exchange like other close-ended funds and has no fixed maturity period and can be bought/sold directly from/to the fund sponsor or fund manager.
As of now, Laxmi Capital manages two close-ended mutual funds i.e Laxmi Equity Fund (LEMF) and Laxmi Unnati Kosh (LUK).
| Subha Laxmi Kosh | |
|---|---|
| Fund Size | Rs. 50 Crores |
| Per Unit Price | Rs. 10 |
| Total Units | 2,50,00,000 |
| Fund Sponsor | Laxmi Bank |
| Fund Manager and Depository | Laxmi Capital Market |
| Seed Fund by Global IME Bank - 15% (units) | 75,00,000 |
| General Public (units) | 1,75,00,000 |
| Nature of Scheme | Open-ended Fund |
| Minimum units to be applied | 100 |
| Maximum units to be applied | 50,00,000 |
| Issue open date | 19th Shrawan |
| Issue closing date (earliest) | 23rd Shrawan |
| Issue closing date (latest) | 2nd Bhadra |
| ICRA rating of Laxmi Bank | [ICRANP-IR] BBB+ |
| ICRA rating of Laxmi Capital Market | [ICRANP] AMC Quality 3+ |
Supervisors of Subha Laxmi Kosh:
| S No. | Name | Profession |
|---|---|---|
| 1 | Advocate Binod Kumar Devkota | Lawyer |
| 2 | Advocate Parshuram Koirala | Lawyer |
| 3 | Prof. Dr. Radheshyam Pradhan | Teacher |
| 4 | C.A. Chhetra Gopal Pradhan | Auditor |
| 5 | Mr. Paristha Nath Poudyal | - |
General Asset Allocation of the proposed scheme's portfolio:
| S.N. | Type of Instrument | Normal Allocation (of Net Assests) | ||||
|---|---|---|---|---|---|---|
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| 1) | Fixed income- Debentures | 8.88% | 8.02% | 7.11% | 6.27% | 5.54% |
| 2) | Fixed income- Current Deposit | 8.57% | 7.60% | 6.61% | 5.71% | 4.95% |
| 3) | Secondary market | 67.89% | 70.10% | 71.02% | 71.51% | 73.57% |
| 4) | Ordinary Shares | 1.89% | 2.03% | 2.07% | 2.06% | 2.01% |
| 5) | Money at call and short notice | 11.06% | 10.70% | 11.82% | 13.25% | 12.86% |
| 6) | Other assets | 1.71% | 1.55% | 1.37% | 1.21% | 1.07% |
| Total | 100% | 100% | 100% | 100% | 100% | |
Capital structure of Laxmi Capital Market:
| Particulars | Amount |
|---|---|
| Authorized Capital | Rs. 50 Crores |
| Issued Capital | Rs. 30 Crores |
| Paid-up Capital | Rs. 27 Crores |
BOARD OF DIRECTORS:
| SNo. | Name | Education | Experience (yrs) | Designation |
|---|---|---|---|---|
| 1 | Sumed Bhattarai | MBA | He holds 23 years of experience in Banking. He served for 3 years at the Nepal Indsouez Bank Limited and for short stint at Kumari Bank Limited. He has been appointed as the Director on 01 April, 2013 by Laxmi bank. Later the board meeting dated 22 July, 2013 unanimously elected him as the Chairman of the board Updated as on 2020-08-28 |
Chairman |
| 2 | Abhaya Raj Sharma | MBA | He has more than 21 years of experience in banking sector. He also served in Nepal Clearing House Limited for a short stint. He has been appointed by the bank as the Director and now he is currently serving as Head-Risk Management in Laxmi Bank Limited. Updated as on 2020-08-28 |
Director |
| 3 | Manish Raj Kunwar | MBA | He holds 20 Years of experience in Banking sector. He has been appointed by the Bank as the Director and now he is currently serving as Head-Corporate Banking of Laxmi Bank Limited. Updated as on 2020-08-28 |
Director |
| 4 | Pooja Shah | Honors in Economics | She has banking experience of 17 years in Laxmi Bank Limited. She has been appointed by the Bank as the Director and now she is currently serving as Head of private banking & Retail Branches of Laxmi Bank Limited. Updated as on 2020-08-28 |
Director |
| 5 | Ram Prasad Khanal | Advocate Registered Auditor | He has 25 years of experience in Legal Matters. He has been appointed as an Independent Director of Laxmi Capital and now he is currently serving as Corporate Lawyer/Auditor/Consultant in various Organizations. Updated as on 2020-08-28 |
Director |
| 6 | Pradeep Raj Upadhyay |
CA | He has more than 18 years experience in the field of accounting, auditing, taxation, project planning and advisory services. He has been appointed as an Independent director of Laxmi Capital. Updated as on 2021-09-15 |
Director |
| 7 | Rajiv Sapkota | MSBA | His experience in banking sector is of 22 Years successively. He served at SEBON as Research Officer during late 1990s. Also served for 8 years at Himalayan Bank Ltd. and short stint at Sunrise Bank Ltd. Now, appointed as CEO on secondment from Laxmi Bank where he is currently serving as Chief Institutional Banking and Business Development. Updated as on 2020-08-28 |
Chief Executive Officer |
Management:
| S. No | Name | Position |
|---|---|---|
| 1 | Mr. Rajiv Sapkota | Chief Executive Officer |
| 2 | Mr. Atish Shrestha | Chief Operating Officer |
| 3 | Mr. Sandeep Pradhan | Head- Investment Banking/Company Secretary |
ICRA Rating (Laxmi Bank & Laxmi Capital Market):
1. Laxmi Bank:
ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BBB+@ (pronounced ICRA NP issuer rating triple B plus) assigned to Laxmi Bank Limited (LBL). The rating is considered to be of moderate credit quality.
Key Strengths:
- Long track record and experienced board/management.
- Comfortable asset quality.
- Steady deposit profile.
Key Challenges:
- Increased pace of credit growth amid uncertain operating environment.
- Declining capital cushion.
- Moderation in profitability.
- Higher credit concentration risks.
2. Laxmi Capital:
ICRA Nepal has reaffirmed the fund management quality rating (FMQR) of Laxmi Capital Market Limited (LCML/ the company) at [ICRANP] AMC Quality 3+ (AMC 3+; pronounced ICRA NP asset management company quality three plus). The rating indicates adequate assurance on management quality.
Key Strengths:
- Fair track record in fund management with satisfactory fund performance.
- Sound ownership profile.
- Experienced fund supervisors and management team.
- Regulatory support for development of MF industry and financial markets.
Key Challenges:
- Volatile operating environment could impact NAV trajectory.
- Sectoral concentration risk.
- Developing stage of mutual fund industry with moderate attraction among investors.
- Limited investment diversification avenues so far; expected to gradually improve.
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