Citizens Mutual Fund undersubscribed with collection of Rs 81.47 crore from 17.3 thousand applicants; Mutual Fund size to be reduced from proposed 1 arba

Citizens Mutual Fund (CMF-1) has raised little over Rs 81.47 crore from 17,315 applicants. After extension of the deadline, the Mutual Fund had finally concluded on Falgun 3, 2074. Earlier, Magh 7 had been set as the earliest closing date for the Mutual Fund Scheme that had been floated from Magh 3, 2074. With over Rs 18 crore worth of Mutual Fund units not subscribed in total, CBIL Capital the issue manager has been forced to reduce the size of the Fund to Rs 81.47 crore from the previously floated size of Rs 1 arba. No provision of share underwriting is available in case of Mutual Funds as well. Out of total Fund size of Rs 1 arba, 15% i.e. Rs 15 crore worth of fund has been secured for the sponsoring institution and issuing institution. This had left Rs 85 crore worth units of Mutual Fund for general public to be grabbed. This gives the clearer picture that the issue was able to raise little over Rs 66 crore from general public out of the total allocated amount of Rs 85 crore. The mutual fund had issued a total of 10 crore unit of ordinary shares worth Rs 1 arba at face value of Rs 10 per unit. Securities Board of Nepal (SEBON) had provided final nod to the public issue of Citizens Mutual Fund on Poush 18, 2074. Citizen Mutual Fund is CBIL Capital’s first mutual fund scheme, and is a 7-years closed-end fund. The scheme will be managed by CBIL Capital Limited with Citizens Bank International Limited (CZBIL) as the fund sponsor. CBIL Capital is a 100% subsidiary of Citizens Bank licensed by SEBON to provide merchant banking, issue management and fund management services. CBIL Capital Limited is the fund manager and Citizens Bank is the fund sponsor of this scheme.