Bandipur Cable Car & Tourism Limited has officially confirmed that the allotment of its highly anticipated Initial Public Offering (IPO) will take place today, Monday, September 15, 2025 (Bhadra 30, 2082), at 4:00 PM. The allotment marks a significant milestone in Nepal’s growing tourism and infrastructure sector, drawing wide attention from retail and institutional investors alike.
The IPO allotment will be conducted under the supervision of the issue manager, Nepal SBI Merchant Banking Limited, ensuring compliance with Securities Board of Nepal (SEBON) regulations. The strong investor response to the offering reflects not only the popularity of the Bandipur Cable Car project but also the increasing appetite among Nepalese investors for growth-stage infrastructure projects, even amidst economic and political challenges.
Overwhelming Investor Interest and Oversubscription
The Bandipur Cable Car IPO has generated extraordinary demand, with a total of 2,512,122 investors submitting applications. The cumulative demand for shares reached 29,869,440, translating to an applied value exceeding NPR 2.98 billion. This massive oversubscription highlights both the liquidity available in Nepal’s capital market and the confidence investors have in tourism-driven infrastructure initiatives.
Following SEBON guidelines, the IPO allotment is structured to prioritize fairness in distribution. Out of the total 5,860,000 public shares, only 4,341,080 shares were offered to the general public after reserving allocations for specific priority groups. Each share has a par value of NPR 100. Given the high oversubscription, only a fraction of applicants will receive allotment. It is estimated that 434,108 investors will obtain the minimum tradable lot of 10 shares each, leaving approximately 2,078,014 applicants (82%) without allocation.
Structured Allotment for Priority Groups
Prior to the general public issue, shares were allocated to selected priority groups to ensure that various stakeholders directly affected by the project or closely linked to the company were fairly represented. These allocations include:
- Project-affected locals: 566,000 shares
- Nepali citizens working abroad: 529,400 shares
- Mutual funds: 264,700 shares
- Company employees: 158,820 shares
This structured approach ensures that local communities, expatriate citizens, and institutional investors receive a share of the offering before it reaches the general public, balancing stakeholder interests with broad market participation.
Company and Project Overview
Bandipur Cable Car & Tourism Limited operates primarily in the hotel and tourism sector, with a focus on infrastructure development that can enhance both domestic and international tourism. The company’s flagship project, the Bandipur Cable Car, is designed to leverage the increasing popularity of the Bandipur region as a major tourist destination in Nepal.
Funds raised through the IPO will be utilized to expand and maintain the cable car system, improve hospitality and tourist facilities, and strengthen the overall tourism infrastructure in the area. The project aims to provide a seamless experience for visitors while boosting local economic growth and employment opportunities in the region.
The company holds a CARE-NP Double B (Issuer) rating from CARE Ratings Nepal, indicating a moderate level of risk typical for infrastructure projects at a growth stage. Investors’ confidence in the project has been further reinforced by the strategic location of Bandipur as a scenic hill destination and the expected increase in tourist inflow following the project’s completion.
Next Steps for Investors
Investors who applied for the IPO can check the allotment results through multiple official channels, including the Nepal SBI Merchant Banking website and the Mero Share portal (CDSC). Refunds for unallotted shares are expected to be processed within a few working days, ensuring timely return of application amounts to unsuccessful applicants.
Allotted shares will be credited to investors’ demat accounts within three business days. Once listed, these shares will be tradable on the Nepal Stock Exchange (NEPSE), allowing investors to participate in secondary market transactions. The success of this IPO is expected to serve as a key indicator of investor sentiment in Nepal’s tourism and infrastructure sectors, particularly as it has attracted substantial interest despite challenging economic conditions.
The oversubscription underscores the growing confidence in Nepal’s tourism industry, and the Bandipur Cable Car IPO is poised to become a benchmark for similar infrastructure-focused offerings in the future. For investors who do not receive shares during the allotment, the secondary market will provide a vital opportunity to participate once trading begins, ensuring continued access to this promising sector.
Significance of the IPO
The Bandipur Cable Car IPO represents more than just a fundraising exercise; it signifies the growing integration of tourism and infrastructure development with Nepal’s capital market. By offering shares to both priority groups and the general public, the company ensures that the benefits of economic development are shared widely while maintaining transparency and adherence to regulatory standards.
As the allotment takes place today, market analysts and investors alike are closely watching the results. The overwhelming response to the IPO demonstrates the market’s confidence in Nepal’s tourism potential and the ability of innovative infrastructure projects to generate substantial investor interest. With the successful implementation of the Bandipur Cable Car project, the company aims to set a new standard for tourism-led economic development in Nepal, attracting more investment and enhancing the country’s position as a premier travel destination.
