Bandipur Cable Car and Tourism Limited (BCTL) has officially closed the public issue of 43,41,080 units of Initial Public Offering (IPO) shares at a par value of Rs. 100 per share from today, 15th Bhadra 2082. The issue had opened for the general public on 11th Bhadra 2082 and saw overwhelming participation from investors across Nepal and abroad.
Issued Capital and Allocation Structure
The company’s issued capital stands at Rs. 2.83 Arba, of which 20.7067% – equivalent to 58,60,000 unit shares – is being issued to the public. This public issuance has been divided into multiple categories to ensure participation from various investor groups.
From the total issue capital, 2% – amounting to 5,66,000 unit shares worth Rs. 5.66 Crores – had already been allotted to project-affected locals from Tanahu and Gorkha districts. The move aimed to ensure local stakeholders benefit from the development of the cable car and tourism infrastructure in their area.
The remaining 18.7067% of the issued capital, equivalent to 52,94,000 unit shares, was allocated for the general public in different categories. Out of this general public portion:
- 10% (5,29,400 units) was reserved for Nepalese citizens working abroad.
- 3% (1,58,820 units) was set aside for company employees.
- 5% (2,64,700 units) was allocated to mutual funds.
The remaining 43,41,080 units were available for subscription by the general public and opened for bidding from 11th Bhadra.
Issue Manager and Application Limits
Nepal SBI Merchant Banking Limited was appointed as the issue manager for the IPO process. Interested applicants were allowed to apply for a minimum of 10 units and a maximum of 20,000 units, ensuring opportunities for both small and large investors to participate.
Oversubscription and Investor Response
According to data from CDS and Clearing Limited (CDSC), the IPO received applications from 21,31,070 investors requesting a total of 2,55,02,210 units. This figure represents an oversubscription of 5.87 times the shares available to the general public, reflecting the strong market confidence in the company’s future growth prospects and the tourism potential of the Bandipur region.
The oversubscription means that only a fraction of applicants will be allotted the minimum number of shares, and allotment will be conducted through a lottery process, as per standard IPO procedures in Nepal.
Credit Rating and Financial Assessment
CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ for Bandipur Cable Car and Tourism Limited, indicating a moderate risk of default in the timely servicing of financial obligations within Nepal. Additionally, CRNL has reaffirmed the ‘CARE-NP BB’ rating assigned to BCTL’s long-term bank facilities.
While this rating places the company in the moderate-risk category, it reflects the early-stage nature of its operations, the capital-intensive nature of tourism infrastructure projects, and the potential for revenue growth once the project becomes fully operational.
Company Background and Project Details
Bandipur Cable Car and Tourism Limited is a private limited company incorporated on January 6, 2013. It is currently developing a large-scale cable car and hotel project in Bandipur, located in the Tanahu district of Nepal.
The project will operate under two primary service modalities:
- Cable Car Transportation – Providing passenger transportation from the base station to the hilltop station and vice versa through modern cable car facilities.
- Lodging and Hospitality Services – Offering accommodation, dining, and related services through a high-end hotel situated at the hilltop destination.
National Priority Project Status
The National Planning Commission (NPC) of Nepal has officially listed the Bandipur Cable Car and Tourism Project as a “National Priority Project” due to its expected contribution to the country’s tourism sector, local economic growth, and employment generation. The project is anticipated to attract both domestic and international tourists, leveraging Bandipur’s natural beauty, cultural heritage, and strategic location between Kathmandu and Pokhara.
Tourism and Economic Potential
Once operational, the Bandipur Cable Car is expected to become one of Nepal’s prominent tourist attractions, offering panoramic views of the Himalayan range and the surrounding hills. The associated hospitality services will also provide a significant boost to the local economy, creating jobs in construction, operations, and tourism-related businesses.
Tourism experts believe the project will enhance Nepal’s tourism portfolio by adding a new experience to the country’s adventure and leisure tourism offerings. Furthermore, given Bandipur’s historic town charm, traditional architecture, and proximity to major highways, the cable car could draw a steady stream of visitors throughout the year.
Market Outlook and Investor Sentiment
The overwhelming oversubscription of the IPO signals strong investor confidence in the company’s business model and the long-term potential of the tourism industry in Nepal. With the government prioritizing tourism as a key driver of economic growth, projects like BCTL’s cable car and hotel facilities are expected to benefit from supportive policies and increasing tourist arrivals.
However, analysts also caution that the success of the project will depend on factors such as effective operational management, sustained tourist inflows, competitive pricing, and the overall stability of Nepal’s tourism sector, which is often sensitive to global and domestic events.
The closing of Bandipur Cable Car and Tourism Limited’s oversubscribed IPO marks an important milestone for the company and the tourism sector in Nepal. With a strong response from both local and international investors, the project is well-positioned to move toward completion and operation in the near future.
As one of Nepal’s designated National Priority Projects, the Bandipur Cable Car is expected to play a significant role in boosting tourism in Tanahu and surrounding regions, providing both economic and social benefits. The coming months will be crucial for the company as it finalizes construction, prepares operational systems, and delivers on the expectations of its shareholders and stakeholders alike.
