Hotel Forest Inn Limited has successfully closed the issue of 3,320,000 IPO shares at a par value of Rs 100 each on 26th Magh, 2082. The initial public offering (IPO) was opened to the general public on 22nd Magh, 2082.
Share Allocation Details
The company’s issued capital stands at Rs 2 Arba, with 20% (40 lakh shares) allocated for the public. Of this, 10% (4,00,000 shares) were reserved for Nepalese citizens working abroad, 2% (80,000 shares) for company employees, and 5% (2,00,000 shares) for mutual funds. The remaining 33,20,000 shares were available to the general public and have now been fully subscribed.
Strong Oversubscription
According to the Central Depository System and Clearing Limited (CDSC), 23,30,086 applicants applied for 2,63,60,500 units, making the issue oversubscribed by 7.93 times, reflecting strong investor interest.
IPO Management and Application
NIC Asia Capital Limited was appointed as the issue manager for the IPO. Applicants could subscribe for a minimum of 10 units and a maximum of 2,00,000 units per applicant.
Credit Rating
CARE Ratings Nepal Limited (CRNL) has assigned a ‘CARE-NP BB-’ rating to the long-term bank facilities of Hotel Forest Inn Private Limited, indicating moderate credit risk.
About the Hotel Project
Hotel Forest Inn Limited, incorporated on November 22, 2010, is developing a 5-star hotel in Budhanilkantha, Kathmandu, spanning 142,783 sq ft. The hotel will feature 102 room keys and is expected to begin operations by October 2023.
The hotel has entered into a License Agreement with InterContinental Hotels Group (IHG) for the international brand ‘Holiday Inn’, an American mid-scale hotel chain, ensuring global brand standards and recognition.
Outlook
The successful IPO reflects strong market confidence in Nepal’s hospitality and tourism sector, particularly in premium hotel investments. With construction progressing and an internationally recognized brand in place, the hotel is expected to contribute to Kathmandu’s tourism growth and attract both domestic and international guests.
