The much-anticipated Initial Public Offering (IPO) allotment of Hotel Forest Inn Limited is set to take place this Monday, 4th Falgun, 2082. The allotment program will be conducted at the premises of the issue manager, NIC Asia Capital Limited, marking a key milestone for the 5-star hotel project in Budhanilkantha, Kathmandu. The initial public offering (IPO) of Hotel Forest Inn Limited, which opened to the general public on 22nd Magh, 2082, successfully closed on 26th Magh, 2082.
IPO Details and Public Participation
Hotel Forest Inn Limited has an issued capital of Rs 2 Arba, with 20 percent (40 lakh shares) allocated to the public. Of this allocation, 10 percent (4,00,000 shares) were reserved for Nepalese citizens working abroad, 2 percent (80,000 shares) for company employees, and 5 percent (2,00,000 shares) for mutual funds. The remaining 33,20,000 shares were made available to the general public, which have now been fully subscribed.
According to CDSC data, a total of 23,30,086 applicants applied by the closing day. Of these, only 3,32,000 applicants are expected to receive allotment, highlighting the overwhelming demand and popularity of the IPO among investors. Applicants could subscribe to a minimum of 10 units and a maximum of 2,00,000 units per applicant, reflecting broad participation from both retail and institutional investors.
Issue Manager and Credit Rating
NIC Asia Capital Limited was appointed as the issue manager for the IPO, overseeing the subscription, allotment, and regulatory compliance process.
In terms of credit evaluation, CARE Ratings Nepal Limited (CRNL) has assigned a ‘CARE-NP BB-’ rating to the long-term bank facilities of Hotel Forest Inn Limited, indicating moderate credit risk. The rating reflects the company’s financial health and the expected performance of the hotel project once operations commence.
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 project has entered into a License Agreement with InterContinental Hotels Group (IHG) to operate under the internationally recognized brand ‘Holiday Inn’, ensuring adherence to global brand standards and providing recognition among domestic and international guests. This strategic partnership is expected to strengthen the hotel’s positioning in Kathmandu’s competitive hospitality market.
Market Outlook and Investor Confidence
The successful subscription of the IPO reflects strong market confidence in Nepal’s hospitality and tourism sector, particularly in premium hotel investments. With construction progressing steadily and backed by a reputable international brand, Hotel Forest Inn is poised to become a key contributor to Kathmandu’s tourism growth, attracting both domestic and international visitors.
Industry experts suggest that the project will not only enhance high-end tourism options in the capital but also stimulate local employment, generate revenue, and promote Nepal’s reputation as a destination for luxury hospitality.
As the IPO allotment proceeds on Monday, investors and market participants are eagerly awaiting the results, which will determine the ownership distribution of one of Kathmandu’s most promising hotel ventures.
