NIC Asia Mutual Fund Oversubscribed by 1.48 Times, Capital Expresses Gratitude

2nd September 2025, Kathmandu

The NIC Asia Equity Linked Investment Scheme (ELIS) has garnered significant investor interest, with its public issuance being oversubscribed by 1.48 times.

NIC Asia Mutual Fund Oversubscribed 

The scheme, managed by NIC Asia Capital Limited, received applications worth NPR 740.31 million from 82,828 applicants, far surpassing the initial offering of NPR 500 million. This remarkable oversubscription rate highlights a growing appetite for mutual funds in Nepal and reinforces investor trust in NIC Asia Capital’s fund management capabilities.

Public Issuance and Oversubscription Details

The public issuance for the NIC Asia Equity Linked Investment Scheme commenced on August 14 and closed on August 28. The scheme initially offered 50 million units to the public at a par value of NPR 10 per unit, totaling NPR 500 million. However, the immense response from retail and institutional investors resulted in a total of 82,828 applications, accumulating a collective subscription of over 74.03 million units. This volume of applications, valued at NPR 740.31 million, represents a significant oversubscription of 1.48 times the initial offering size.

The successful oversubscription demonstrates the high level of trust and confidence that investors have placed in NIC Asia Capital and its ability to manage diversified financial products. As an open-ended mutual fund, the ELIS offers investors the flexibility to purchase and sell units directly from the fund house at its daily calculated Net Asset Value (NAV), providing a high degree of liquidity and convenience.

Scheme Overview and Future Outlook

The NIC Asia Equity Linked Investment Scheme is the second open-ended mutual fund to be operated by NIC Asia Capital. While the first phase aimed for a fund size of NPR 500 million, the Securities Board of Nepal (SEBON) has granted approval for a total scheme size of up to NPR 1 billion, which equates to 100 million units (including the seed capital). This approval provides the fund manager with the flexibility to scale the scheme based on future investor demand and evolving market opportunities. The proportional allotment process, as per regulatory guidelines, will ensure that all applicants who subscribed during the period receive units.

NIC Asia Capital has extended its sincere gratitude to all the stakeholders who contributed to the success of this issuance. This includes the thousands of investors for their participation, the C-ASBA member banks and financial institutions for their seamless support in facilitating the application process, and SEBON for its crucial regulatory guidance and approval. The company sees the oversubscription as a clear sign that its financial products resonate with the market and that its fund management expertise is well-regarded.

Broader Impact on Nepal’s Capital Market

The overwhelming success of the NIC Asia ELIS IPO has a far-reaching impact on Nepal’s developing capital market. This event signifies several key trends:

Growing Investor Confidence: The oversubscription reflects increasing trust in professionally managed investment vehicles like mutual funds. As investors become more informed, they are moving away from traditional savings methods towards more diversified and sophisticated instruments.

Expansion of Mutual Fund Industry: The strong demand for ELIS adds significant momentum to Nepal’s mutual fund industry. Mutual funds are essential for providing retail investors with an accessible and affordable way to participate in the stock market without the need for extensive knowledge or active management.

Increased Financial Inclusion: The high number of individual applicants, 82,828, shows that the capital market is becoming more inclusive. More retail investors, including small-scale investors, are participating, which is crucial for the long-term growth and stability of the market.

Shift in Investor Behavior: The rising popularity of mutual funds indicates a gradual shift in investor behavior. Individuals are increasingly seeking professional financial management to achieve their long-term wealth creation goals. This shift helps to strengthen the overall financial ecosystem and supports a more robust market.

The NIC Asia Equity Linked Investment Scheme is well-positioned to leverage SEBON’s approval for a larger fund size. This will allow it to continue attracting capital and offering a professionally managed portfolio that can help investors achieve risk diversification and stable returns, thus contributing to the further maturity and growth of Nepal’s capital market.

For More: NIC Asia Mutual Fund Oversubscribed