Mahaana, the digital investment platform, has launched Mahaana Gold, an IPO for units in the Mahaana Islamic Gold Fund, an open-end Shariah-compliant scheme that invests in deliverable physical gold rather than a contract that simply tracks the metal’s price. The offer opened with a minimum investment of Rs. 10,000, with Rs. 5,000 or more required for any investment after that. The IPO closes on September 10 at 4:00 PM, with subscriptions taken through the Mahaana app, and units will be allotted on September 11 at a single issue price. The offer size for this round stands at Rs. 100 million, allotted on a first-come, first-served basis, with zero front-end load during the IPO window and a front-end load of up to 1.5 percent applying afterward.
The gold behind each unit is physical, with Mahaana purchasing deliverable gold through the Pakistan Mercantile Exchange and holding it in a vault, so what backs an investor’s units is metal rather than synthetic price exposure. The fund itself is not held by Mahaana directly, as the Central Depository Company acts as trustee and keeps the fund’s assets separate from Mahaana’s own balance sheet, meaning the gold is not accessible to Mahaana’s creditors. A portion of the fund is kept liquid in cash and Shariah-compliant instruments so redemptions can be processed without needing to sell gold on short notice, and the gold is valued at the close of every business day to set the unit price. The structure runs on a Wakalatul Istithmar model, where the investor appoints Mahaana as an agent to invest on their behalf for a disclosed fee, with returns belonging entirely to unit holders. The fund is certified by SECP’s Islamic Finance Department and reviewed by the Shariah Advisory Board led by Al Hilal Shariah Advisors.
Shamoon Tariq, CEO and Founder of Mahaana Wealth, explained the reasoning behind the product on a recent podcast, saying the decision to invest in gold depends on the purpose behind it, and that anyone buying for a wedding or personal use should still go to a jeweller rather than this fund. He pointed to several practical issues with buying gold the traditional way, including jewellery rarely being 24 karat, added making charges, the need to store gold securely at home or in a locker, and the practical minimum purchase of around 10 grams at most jewellers, which requires four to five lakh rupees upfront. He said an investor can instead build a position gradually with amounts as small as Rs. 5,000, with the investment moving in line with the gold price without the burden of physically storing or securing the metal.
On liquidity, Tariq said units can be sold the day after they are issued, with opening an account and completing a transaction taking only a few minutes. Once a withdrawal request is submitted, Mahaana sells the gold on PMEX and processes proceeds through CDC, a settlement cycle that typically takes three to four days before funds reach the investor’s bank account. There is no back-end load or lock-in on redemption after 30 days, though redeeming within the first 30 days can trigger a back-end load, a rule that applies across Mahaana’s other products as well. The management fee, up to 1.5 percent, accrues daily in the unit price rather than being charged separately. Those interested in the offering can find more details on Mahaana Gold through the Mahaana app or by contacting the company’s customer support.
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