The Securities Board of Nepal (SEBON) has officially approved the Initial Public Offering (IPO) proposal submitted by Bandipur Cable Car and Tourism Limited (BCTL). The regulatory clearance was granted on 19th Ashadh, 2082, marking a significant step for the company’s transition into wider public ownership and its expansion in the tourism infrastructure sector of Nepal.
5.86 Million Shares to be Issued
According to the approved IPO plan, BCTL will issue a total of 5,860,000 equity shares to the local residents and the general public. This public offering represents 20.7067% of the company’s total issued capital. The shares will be offered at a par value of NPR 100 per share, making the offering accessible to a broad spectrum of investors, including those from the local communities around the project area.
This allocation reflects the company’s intention to include both local participation and general investors in its ownership structure, thereby strengthening its stakeholder base and community engagement. It also demonstrates the company’s commitment to transparency and sustainable financial planning as it seeks to expand its operations and facilities.
Nepal SBI Merchant Banking as Issue Manager
To facilitate the IPO process, Nepal SBI Merchant Banking Limited has been appointed as the issue and sales manager. The firm will be responsible for managing the entire issuance process, from application collection to allotment and compliance with SEBON’s regulatory framework. As an experienced merchant banker in the Nepali capital market, Nepal SBI Merchant Banking’s involvement is expected to ensure a smooth and efficient public offering process.
Credit Rating Reaffirmed by CARE Ratings Nepal
In terms of credit assessment, CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ for Bandipur Cable Car and Tourism Limited. This rating suggests that the company carries a moderate risk of default in regard to timely servicing of its financial obligations in Nepal. Additionally, CRNL has reaffirmed the ‘CARE-NP BB’ rating for the company’s long-term bank facilities, reinforcing the company’s relative financial stability in the eyes of institutional and retail investors.
These ratings provide a degree of assurance to potential investors regarding BCTL’s financial management practices, business model, and overall creditworthiness, while also indicating the company’s need to maintain and improve its operational efficiency and financial discipline as it steps into public markets.
Company Background and Vision
Bandipur Cable Car and Tourism Limited was initially established as a private limited company on January 6, 2013, and later transitioned into a public limited company on August 29, 2021. The company was formed with the collaboration of institutional promoters, local government bodies, and individual investors from diverse professional fields. This wide-ranging ownership structure reflects the collective vision of stakeholders who are committed to boosting tourism and infrastructure in Bandipur, Tanahu District, one of Nepal’s most scenic and culturally rich destinations.
The primary goal of the company is to establish and operate a cable car transportation system that connects the base of Bandipur with its hilltop station. In addition to transportation services, the company is also working on developing a hospitality component, which includes the establishment of a proposed five-star hotel aimed at providing high-end lodging and services to both domestic and international tourists.
Project Recognized as National Priority
Highlighting the strategic importance of the project, the National Planning Commission (NPC) has officially listed the Bandipur Cable Car and Tourism Project as a ‘National Priority Project’. This recognition underscores the government’s interest in enhancing tourism infrastructure and regional economic development. The cable car and associated hospitality ventures are expected to boost local employment, increase tourism revenue, and improve the overall accessibility of Bandipur, which is known for its historical charm and panoramic mountain views.
The project also aligns with Nepal’s broader agenda of promoting sustainable and inclusive tourism, particularly in emerging tourist hubs that have remained underdeveloped due to infrastructure limitations. Once completed, the cable car system and the hotel are anticipated to become major attractions, drawing a steady flow of visitors and contributing to the socio-economic upliftment of the local area.
Looking Ahead
With the IPO now approved and preparations underway, Bandipur Cable Car and Tourism Limited is poised to take a significant leap forward in its development journey. The infusion of public capital will not only support the completion and expansion of the project but also increase public trust and accountability in its operations.
For investors, the IPO presents a promising opportunity to be part of a pioneering tourism infrastructure initiative backed by strong local and institutional support. As the company moves toward listing and implementation, all eyes will be on how effectively it utilizes the raised funds to achieve its stated objectives and deliver long-term value to both shareholders and the communities it serves.
