"Global IME Balance Fund-I" Opens From Today; All information You Need To Know In One Place
Wed, Jul 6, 2022 9:56 AM on Mutual Fund, Company Analysis, Exclusive,
Company Profile
The mutual fund scheme “Global IME Balance Fund-I (GIMEBF)” is promoted by Global IME Bank and managed by Global IME Capital.
Global IME Capital Limited (GBIMEL) was established in May 2008, this is a majority-owned subsidiary of Global IME Bank Limited. GBIMEL has been licensed by SEBON to work as an investment banker (including services such as MF management, private placement, portfolio management) and as a merchant banker (including services such as issue management, depository participant, registrar to share (RTS) and underwriting services). It has obtained a depository participant’s licence in addition to a fund manager’s licence from SEBON and is currently acting in both capacities for its closed-end scheme, i.e. Global IME Samunnat Scheme-1, which was launched in March 2016 with a tenure of seven years.
Global IME Bank Limited (GBIME) was incorporated in 2007 and has since undergone multiple large and small mergers/acquisitions and now encompasses 18 different merged/acquired entities. A major entity that was acquired is Janata Bank Nepal Limited. With this merger in December 2019, GBIME has become the second largest commercial bank in Nepal in terms of the asset base and market share (deposit and credit). It has a presence across the country through 281 branches, 219 branchless banking centres, 47 extension and revenue collection counters and 241 ATMs as of mid-July 2021. As on the same date, the bank had a market share of 6.38% in terms of the deposit base and 6.43% in terms of the credit portfolio of the commercial banks industry.
About the issue
Global IME Capital Limited sets to open a new closed-end mutual fund scheme “Global IME Balance Fund-I (GIMEBF)” worth Rs 1.2 arba with a maturity of 10 years.
The opening date of this fund is today i.e 22nd Ashad and the closing date is on 26th Ashad, 2079 at the earliest. If the application is not adequately subscribed the closing date will be extended up to Shrawan 04.
This fund is managed by Global IME Capital Limited and sponsored by Global IME Bank. The issue is of 12 crore units worth Rs 1.2 arba and the per-unit cost is Rs 10. An investor can apply for a minimum of 100 units and a maximum of 1.20 crore units.
15% of the total units i.e. 1.80 crore units worth Rs. 18 crores have been allocated to the fund sponsor Global IME Bank Limited and fund manager Global IME Capital Limited. Thus, the remaining 10.20 crores units is for the general public.
As of now, Global IME Capital manages one closed-end mutual fund named Global IME Samunnat Scheme 1 (GIMES1).
| Global IME Balanced Fund-1 | |
|---|---|
| Fund Size | Rs. 1.20 Arba |
| Per Unit Price | Rs. 10 |
| Total Units | 12,00,00,000 |
| Fund Sponsor | Global IME Bank |
| Fund Manager and Depository | Global IME Capital |
| Seed Fund by Global IME Bank - 13.5% (units) | 1,62,00,000 |
| Seed Fund by Global IME Capital - 1.5% (units) | 18,00,000 |
| General Public (units) | 10,20,00,000 |
| Nature of Scheme | Closed-end Fund |
| Fund Maturity | 10 years |
| Minimum units to be applied | 100 |
| Maximum units to be applied | 1,20,00,000 |
| Issue open date | 22nd Ashad |
| Issue closing date (earliest) | 26th Ashad |
| Issue closing date (latest) | 4th Shrawan |
| ICRA rating of Global IME Bank | [ICRANP-IR] A |
| ICRA rating of Global IME Capital | [ICRANP] AMC Quality 3 |
| Minimum units that needs to be sold | 6,00,00,000 |
| Maximum units that can be extended | 15,00,00,000 |
Dividend Payout
The dividend will be paid out of realized profits in proportion to investments made. The Retained earnings will be re-invested if any.
Supervisors of GIMEBF:
| S No. | Name | Qualification |
|---|---|---|
| 1 | Surendra Man Pradhan | C.A / M.B.A |
| 2 | Bharat Rijal | C.A./MBS/PGDFM |
| 3 | Janma Jaya Regmi | MA/BL |
| 4 | Durga Dutta Dhakal | M.A Economics/ M.P.A |
| 5 | Prakash Kumar Dhungana | MBS |
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 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||
| 1) | Fixed income | 12.5% | 11% | 11% | 11% | 11% | 13% | 13% | 13% | 13% | 11% |
| 2) | Investment in Ordinary shares | 70% | 73% | 73% | 73% | 73% | 70% | 70% | 70% | 70% | 20% |
| 3) | Mutual Fund | 5% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% |
| 4) | Amount set aside for investment in primary shares | 12.5% | 13% | 13% | 13% | 13% | 14% | 14% | 14% | 14% | 66% |
| Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | |
Capital structure of Global IME Capital:
| Particulars | Amount |
|---|---|
| Authorized Capital | Rs. 50 Crores |
| Issued Capital | Rs. 36.55 Crores |
| Paid-up Capital | Rs. 36.55 Crores |
Board of directors:
| S. No | Name | Position |
|---|---|---|
| 1 | Mr. Mahesh Sharma Dhakal | Director (Group A) |
| 2 | Mr. Pradeep Adhikari | Independent Director |
| 3 | Mr. Raman Upreti | Independent Director |
| 4 | Mr. Kamal Prasad Aryal | Director (Group B) |
Investment Avenues:
- Securities that are registered with SEBON.
- Securities called for a public offering.
- Securities that are listed in NEPSE.
- Debentures, Treasury Bills, and other instruments of money market issued by Government of Nepal or Government Agencies receiving full guarantee or protection of GoN or NRB.
- Bank deposits.
- Money Market Instruments.
- Other areas as prescribed by SEBON.
ICRA Rating (Global IME Bank & Global IME Capital):
1. Global IME Bank:
ICRA Nepal has upgraded the issuer rating of Global IME Bank Limited to [ICRANP-IR] A (pronounced ICRA NP issuer rating A) from [ICRANP-IR] A- (pronounced ICRA NP issuer rating A minus). The rating indicates an adequate degree of safety regarding the timely servicing of financial obligations. Such issuers carry low credit risk.
Key Strengths:
- Comfortable capitalisation.
- Experienced promoter group, board, and management team.
- Fair track record and wide branch network contribute to portfolio granularity.
- Adequate profitability.
Key Challenges:
- Uncertain operating environment.
- Increase in reported NPAs amid the pandemic, however delinquencies have gradually improved.
- Relatively inferior deposit profile with lower proportion of low-cost deposits.
- Analytical approach.
2. Global IME Capital:
ICRA Nepal has reaffirmed the fund management quality rating of [ICRANP] AMC Quality 3 (pronounced ICRA NP Asset Management Company Quality Three) to Global IME Capital Limited. The rating indicates adequate assurance on the management quality.
Key Strengths:
- Strong ownership profile.
- Satisfactory fund performance.
- 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.
- Moderate track record in MF management and periodic sectoral concentration of investment.
- Developing stage of mutual fund industry.
- Limited investment diversification avenues so far; expected to gradually improve.
- Moderate attraction of MF schemes among investors, albeit improving in recent periods.
- Analytical approach.
Click here to view the prospectus
Click here to view the offer letter
