Sanima Mutual Fund IPO receives 5 times more applications than demand

KATHMANDU: Sanima Capital has received applications for ‘Sanima Large Cap Mutual Fund’ five times more than the demand as of Sunday evening.

According to Sanima Capital, the issue manager, 36,840 applicants applied for 450,058,100 units of shares until 5 pm Sunday, which is 5.29  times more than the demand.

On last Friday, Sanima Capital issued 100 million units of close ended mutual fund initial public offerings (IPO) worth Rs one billion  for the second time.

The close ended mutual fund will mature in seven years. The deadline for applications is until  Tuesday.

Willing applicants can apply for minimum 100 units of fund to maximum 10 million units of mutual fund for Rs 10 per unit of fund.

Sanima Bank is the manager of this fund.

Like IPO, applicants can apply through the banks linked with their demat accounts or via mero share accounts online.

Unlike ordinary shares, this fund will distribute cash bonus based on the profits during the period and the accumulated fund will be distributed only after seven years to all shareholders by selling all its movable and non-moveable assets, according to the company.

Given the 1.5 million applicants for IPO of ordinary shares in the current share market, the close ended mutual fund could also be an attraction for the people in general.