Siddhartha’s SEOS gets good response: oversubscribed by around 3 times

ShareSansar, June 29:
 
The five-year closed end Siddhartha Equity Oriented Scheme (SEOS), the second mutual fund launched by Siddhartha Bank Limited and managed by Siddhartha Capital Limited, has been oversubscribed by around three times.

The issuance of the mutual fund scheme floated from June 25 at a value of Rs 10 per unit floated had closed yesterday

 “SEOS was oversubscribed by 1.5 times in the first two days,” said Siddhartha Capital’s CEO Dhurba Timilsina. “Even by moderate estimate it ought to be oversubscribed by three times, though we are stilling compiling the data.”
 
Out of the total 8 crore units of the scheme worth Rs 80 crore, 1.20 crore units have been set aside for the issuer itself.Interested investors must buy at least 100 units and at the most 80 lakh unit before the issue closes.
 
Timilsina informed that SEOS will target 70 percent equity market, 25 percent bond market and only 5 percent liquidity management. Asked why did they opt for an equity oriented scheme this time unlike their first scheme, Siddhartha Investment Growth Scheme-I or SIGS-I, he said that equity -oriented scheme was brought initially since the capital market is no longer undervalued and equity market is also growing.
 
SEOS, the second mutual scheme by the Siddhartha Bank, has received [ICRANP] AMC Quality 3 (AMCs) rating, which is very good while the issue manager itself has received ICRANP BBB, which is not bad at all.