Public Offering of Laxmi Value Fund II Opens From Today; All information You Need To Know In One Place
Fri, Jul 21, 2023 7:52 AM on IPO/FPO News, Mutual Fund, Latest,
Company Profile
The mutual fund scheme "Laxmi Value Fund-II" is promoted by Former Laxmi Bank and managed by Laxmi Capital Market.
Former Laxmi Bank Limited (LBL) was the 16th commercial bank in Nepal, founded in 2002 A.D. In 2004 Laxmi Bank merged with HISEF Finance Limited, a first-generation finance company which was the first merger in Nepali corporate history. In 2016, the Bank also acquired Professional Diyalo Bikas Bank, a regional development Bank. Laxmi Bank is a Category ‘A’ Financial Institution and was re-registered in 2006 under the Banks and Financial Institutions Act of Nepal. The Bank’s shares are listed and actively traded on the Nepal Stock Exchange. The bank also promoted a life insurance company known as Prime Life Insurance in 2007 and holds a 15% shareholding stake in it. The bank has recently merged with Sunrise Bank Limited and has begun the joint transaction under the name "Laxmi Sunrise Bank Limited" from Ashad 29, 2080.
Laxmi Capital Market Limited (LAXMICAP) is a wholly-owned subsidiary of Laxmi Bank Limited. It has obtained a license from the Securities Board of Nepal (SEBON) to be engaged in merchant banking activities such as Initial Public Offering (IPO), Underwriting of Securities, Portfolio Management Services, Registrar to Share, etc. The objective of the company is to provide an entire gamut of merchant banking services. It operates independently under professional management with strategic support from the Board and the parent company. The company aims to raise the industry standard by incorporating best practices in capital market activities and embracing modern technologies to augment the way products and services are offered to its customers.
Company Profile
Laxmi Capital sets to open a new close-end mutual fund scheme “Laxmi Value Fund-II” worth Rs. 80 Crores.
The opening date of this fund is today i.e. 5th Shrawan and close on the 9th Shrawan, 2080 at the earliest. If the application is not adequately subscribed the closing date will be extended up to Shrawan 19.
This is a closed-end mutual fund scheme that will be floating 8 crore unit shares each at a par value of Rs 10 per share. Out of 8 crore unit shares; 15% or 1.20 crore units worth Rs. 12 crore have been allocated to the fund sponsor Laxmi Bank Limited whereas the remaining 6.80 crore units will be issued to the general public from 5th Shrawan.
It has a maturity period of 10 years. Applicants can apply for a minimum of 100 units to a maximum of 8,000,000 units.
As of now, Laxmi Capital Market is managing two closed-end funds i.e Laxmi Equity Fund (LEMF) and Laxmi Unnati Kosh (LUK), and one open-end fund i.e Shubha Laxmi Kosh (SLK) in the market.
| Laxmi Value Fund-II | |
|---|---|
| Fund Size | Rs. 80 Crores |
| Per Unit Price | Rs. 10 |
| Total Units | 800,00,000 |
| Fund Sponsor | Laxmi Bank |
| Fund Manager and Depository | Laxmi Capital Market |
| Seed Fund by Laxmi Bank - 15% (units) | 1,20,00,000 |
| General Public (units) | 6,80,00,000 |
| Nature of Scheme | Close-end Fund |
| Minimum units to be applied | 100 |
| Maximum units to be applied | 8,000,000 |
| Issue open date | 5th Shrawan |
| Issue closing date (earliest) | 9th Shrawan |
| Issue closing date (latest) | 19th Shrawan |
Supervisors of Laxmi Value Fund II:
| S No. | Name | Profession |
|---|---|---|
| 1 | Advocate Binod Kumar Devkota | Lawyer |
| 2 | Advocate Parshuram Koirala | Lawyer |
| 3 | Pro. Dr. Radheshyam Pradhan | Teacher |
| 4 | C.A. Chhetra Gopal Pradhan | Auditor |
| 5 | Mr. Paristha Nath Poudyal | - |
General Asset Allocation of the proposed scheme's portfolio:
| S.N. | Type of Instrument | Normal Allocation (of Net Assets) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||
| 1) | Fixed income- Debentures | 12.89% | 12.47% | 15.68% | 15.53% | 15.77% | 12.27% | 12.62% | 12.36% | 13.02% | 13.47% |
| 2) | Fixed income- Current Deposit | 4.30% | 4.16% | 5.23% | 5.18% | 5.26% | 4.09% | 4.21% | 4.12% | 4.34% | 4.49% |
| 3) | Secondary market | 59.71% | 58.61% | 60.49% | 61.96% | 64.53% | 62.68% | 62.37% | 62.53% | 52.81% | 30.21% |
| 4) | Ordinary Shares | 2.32% | 2.39% | 2.26% | 2.11% | 2.19% | 2.07% | 1.57% | 1.57% | 1.41% | 0.00% |
| 5) | Money at call and short notice | 19.93% | 21.54% | 15.55% | 14.47% | 11.51% | 18.20% | 18.55% | 18.55% | 27.78% | 51.19% |
| 6) | Other assets | 0.86% | 0.82% | 0.79% | 0.76% | 0.73% | 0.70% | 0.68% | 0.68% | 0.64% | 0.64% |
| Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | |
Capital Structure of Laxmi Capital Market:
| Particulars | Amount |
|---|---|
| Authorized Capital | Rs. 50 Crores |
| Issued Capital | Rs. 32.10 Crores |
| Paid-up Capital | Rs. 28.89 Crores |
BOARD OF DIRECTORS:
| SNo. | Name | Education | Experience (yrs) | Designation |
|---|---|---|---|---|
| 1 | Sumed Bhattarai | MBA | He holds 26 years of experience in Banking. He served for 3 years at the Nepal Indsouez Bank Limited and for a short stint at Kumari Bank Limited. He has been appointed as the Director on 01 April 2013 by Laxmi Bank. Later the board meeting dated 22 July 2013 unanimously elected him as the Chairman of the board |
Chairman |
| 2 | Abhaya Raj Sharma | MBA | He has more than 24 years of experience in the banking sector. He also served in Nepal Clearing House Limited for a short stint. He has been appointed by the bank as the Director and now he is currently serving as Head-Risk Management in Laxmi Bank Limited. |
Director |
| 3 | Manish Raj Kunwar | MBA | He holds 23 Years of experience in the Banking sector. He has been appointed by the Bank as the Director and now he is currently serving as Head-Corporate Banking of Laxmi Bank Limited. |
Director |
| 4 | Pooja Shah | Honors in Economics | She has banking experience of 20 years in Laxmi Bank Limited. She has been appointed by the Bank as the Director and now she is currently serving as Head of private banking & Retail Branches of Laxmi Bank Limited. |
Director |
| 5 | Ram Prasad Khanal | Advocate Registered Auditor | He has 28 years of experience in the Legal Matters. He has been appointed as an Independent Director of Laxmi Capital and now he is currently serving as Corporate Lawyer/Auditor/Consultant in various Organizations. |
Director |
| 6 | Pradeep Raj Upadhyay |
CA | He has more than 20 years of experience in the field of accounting, auditing, taxation, project planning, and advisory services. He has been appointed as an Independent Director of Laxmi Capital. |
Director |
| 7 | Rajiv Sapkota | MSBA | His experience in the banking sector is 25 Years successively. He served at SEBON as Research Officer during the late 1990s. Also served for 8 years at Himalayan Bank Ltd. and short stint at Sunrise Bank Ltd. Now, appointed as CEO on secondment from Laxmi Bank where he is currently serving as Chief Institutional Banking and Business Development. |
Chief Executive Officer |
ICRA Rating of Laxmi Capital Market:
1. Laxmi Capital:
ICRA Nepal has reaffirmed the fund management quality rating (FMQR) of Laxmi Capital Market Limited (LCML/ the company) at [ICRANP] AMC Quality 3+ (AMC 3+; pronounced ICRA NP asset management company quality three plus). The rating indicates adequate assurance of management quality.
Key Strengths:
- Fair track record in fund management with satisfactory fund performance.
- Sound ownership profile.
- Experienced fund supervisors and management team.
- Regulatory support for the development of the MF industry and financial markets.
Key Challenges:
- A volatile operating environment could impact NAV trajectory.
- Sectoral concentration risk.
- Developing stage of the mutual fund industry with moderate attraction among investors.
- Limited investment diversification avenues so far; are expected to gradually improve.
