The IPO of “NIC Asia Dynamic Debt Mutual Fund” has closed today, i.e. Mangsir 16. The issue was open from Mangsir 12.
While the mutual fund schemes in Nepal invest primarily in equities, with NIBL Sahabhagita Fund investing in both equities and debt, the “NIC Asia Dynamic Debt Mutual Fund” will invest exclusively on debt instruments, i.e. debentures.
From the total of 5 crores units, 15% is for the issue promoter NIC Asia Bank itself. The remaining units are open to the general public and institutions. One can apply for a maximum of 50 lakh units with a par value of Rs. 10 each. Meanwhile, applications must be for a minimum of 100 units.
According to the issue manager NIC Asia Capital, the IPO received applications for a total of 6,53,84,140 units from 80,409 applicants. With this, the IPO issue is concluded.
With this open-ended mutual fund scheme, the merchant bank aims to promote the ongoing efforts of different BFIs that have been issuing a number of debenture programs into the market. It also aims to minimize the risks since investments in debentures are considered more immune to drastic downfalls like in the equity market.