The Initial Public Offering (IPO) proposal of Hotel Ichchha Limited has officially been added to the pipeline of the Securities Board of Nepal (SEBON), marking an important milestone for the company as it moves closer to entering Nepal’s capital market. With this development, Hotel Ichchha Limited has formally expressed its intention to raise capital from the general public, subject to regulatory approval from SEBON. Only after receiving this approval will the company be permitted to issue shares to local and public investors.
IPO Size and Capital Mobilization Plan
According to the submitted proposal, Hotel Ichchha Limited plans to issue 35 lakh ordinary shares at a par value of Rs. 100 per share. Through this public issue, the company aims to raise a total of Rs. 35 crore. The proposed IPO is expected to support the company’s long-term financial structure, strengthen its capital base, and help meet operational and strategic requirements associated with operating a high-end hospitality property.
Himalayan Capital Limited has been appointed as the issue manager for the proposed IPO. As the issue manager, the company will be responsible for managing the entire issuance process, including regulatory coordination, documentation, public communication, and execution once SEBON grants approval.
Regulatory Process and SEBON Approval
The inclusion of Hotel Ichchha Limited’s proposal in SEBON’s pipeline indicates that the preliminary documentation has been submitted and registered for review. However, the company will only be able to float its shares to the general public after receiving formal approval from the regulatory authority. SEBON’s review process typically evaluates the company’s financial disclosures, risk factors, compliance status, and overall suitability for public investment to ensure transparency and investor protection.
Credit Rating and Risk Assessment
ICRA Nepal Limited has assigned Hotel Ichchha Limited an issuer rating of [ICRANP-IR] BB. This rating indicates a moderate risk of default in meeting financial obligations. The issuer rating reflects the general creditworthiness of the company rather than being linked to any specific debt instrument. As per ICRA Nepal’s rating scale, ratings range from AA to C, with plus (+) or minus (–) signs denoting relative strength within each category.
The BB rating suggests that while the company has the capacity to meet its obligations, it remains vulnerable to adverse business or economic conditions. For potential investors, this rating serves as an independent assessment of the company’s financial risk profile and is an important factor to consider while evaluating the upcoming IPO.
Company Background and Hotel Profile
Hotel Ichchha Limited (HIL) operates a five-star hotel property with 97 room keys located in Simara, Bara, a strategically important industrial and transit hub in southern Nepal. The hotel was initially incorporated as a private limited company in September 2015 and later converted into a public limited company on June 03, 2024, in preparation for public share issuance.
The hotel was granted a five-star license in March 2023, upgrading from its earlier four-star classification. This upgrade reflects improvements in infrastructure, service standards, and overall facilities, positioning the hotel in the premium segment of Nepal’s hospitality industry.
Ownership and Corporate Structure
Hotel Ichchha Limited is promoted by Mr. Ichchha Bahadur Wagle, along with his family members and associates. The company’s registered office is located at Tinkune, Kathmandu, while its primary hotel operations are based in Simara, Bara. The promoters have longstanding involvement in the hospitality and business sector, which the company believes will support stable operations and long-term growth.
With its IPO proposal now in SEBON’s pipeline, Hotel Ichchha Limited has taken a key step toward public listing. The proposed issue offers investors potential exposure to Nepal’s growing hospitality sector, particularly outside the Kathmandu Valley. However, as with any IPO, final approval, market conditions, and investor appetite will play a crucial role in determining the timeline and success of the issue. Investors are advised to closely review regulatory disclosures once the IPO receives SEBON approval.
