Bandipur Cable Car and Tourism Limited (BCTL) has officially opened its Initial Public Offering (IPO) for the general public from today, 11th Bhadra, 2082. The company is offering 43,41,080 unit shares at a par value of Rs. 100 per share, amounting to a total of Rs. 43.41 crores. Investors can apply until the early closing date of 15th Bhadra, 2082. However, if the issue is not fully subscribed by then, the deadline will be extended to 25th Bhadra, 2082.
Capital Structure and IPO Allocation
BCTL has an issued capital of Rs. 2.83 Arba, out of which 20.7067%, equivalent to 58,60,000 unit shares, is being issued to the public. This public issuance is divided into multiple categories. A total of 2% of the issued capital, amounting to 5,66,000 unit shares worth Rs. 5.66 crores, was previously allotted to project-affected locals of Tanahu and Gorkha districts.
The remaining 18.7067% of the issued capital, or 52,94,000 unit shares, has been allocated for the general public in various subcategories. From this general public allotment:
- 10%, or 5,29,400 unit shares, has been reserved for Nepalese citizens working abroad.
- 3%, or 1,58,820 unit shares, is allocated for the employees of the company.
- 5%, or 2,64,700 unit shares, is set aside for mutual funds.
- The remaining 43,41,080 unit shares are open for subscription to the general public starting today.
Application Process and Issue Management
Nepal SBI Merchant Banking Limited is the appointed issue manager for the IPO process. Interested investors can submit applications for a minimum of 10 units and up to a maximum of 20,000 units. The allotment will follow the standard procedure of proportionate distribution in case of oversubscription.
Given the high interest in infrastructure-related IPOs in Nepal, market analysts expect the offering to receive an enthusiastic response from investors, particularly due to the tourism potential of the Bandipur project and its national priority status.
Credit Rating and Risk Assessment
CARE Ratings Nepal Limited (CRNL) has reaffirmed BCTL’s issuer rating at ‘CARE-NP BB (Is)’, indicating a moderate risk of default in the timely servicing of financial obligations within Nepal. Additionally, CRNL has maintained the ‘CARE-NP BB’ rating for the company’s long-term bank facilities.
While this rating suggests moderate credit risk, it also reflects the company’s potential for steady revenue generation once operations begin. The rating incorporates factors such as project execution challenges, tourism seasonality, and the long-term viability of the hospitality and cable car sector in Nepal.
Company Background and Project Overview
Bandipur Cable Car and Tourism Limited is a private limited company incorporated on January 6, 2013. The company’s flagship project in Bandipur, Tanahu district, comprises two main components:
- Cable Car Services – Offering transportation from the base station to the hilltop station and back, enabling visitors to enjoy the scenic beauty of Bandipur without the need for long uphill treks.
- Lodging and Hospitality Services – Through its hotel facilities located at the hilltop, the company aims to cater to both domestic and international tourists seeking an immersive stay experience.
The project has been recognized as a “National Priority Project” by the National Planning Commission (NPC), underscoring its importance in boosting regional tourism and local economic development.
Strategic Importance and Market Potential
Bandipur is a popular hilltop settlement in Tanahu district, well-known for its preserved cultural heritage, panoramic Himalayan views, and tranquil environment. The introduction of a cable car service is expected to significantly enhance tourist accessibility and reduce travel time to the town, attracting more domestic and foreign visitors.
Moreover, the integration of hospitality services alongside the transportation infrastructure aims to create a complete tourism experience. By offering both travel and accommodation, BCTL is positioning itself to capture a larger share of the tourism value chain, which could translate into higher revenue streams in the long term.
Economic and Tourism Impact
The Bandipur Cable Car project is anticipated to have multiple benefits:
- Boosting Tourism – By making Bandipur more accessible, the project is expected to draw a greater number of visitors year-round.
- Job Creation – The construction, operation, and hospitality components of the project will generate direct and indirect employment opportunities for local communities.
- Local Business Growth – Increased tourist flow is likely to stimulate growth in local businesses, including restaurants, handicraft shops, and cultural activity providers.
- Infrastructure Development – The project will encourage further development of roads, utilities, and other tourism-related facilities in the region.
Investor Outlook and Prospects
The IPO launch comes at a time when Nepal’s capital market has shown strong interest in infrastructure and tourism-based projects. While the company’s moderate credit rating indicates certain operational and financial risks, the “National Priority Project” status, combined with the growing appeal of Bandipur as a tourist destination, enhances its investment appeal.
Market observers note that successful execution of the project could position BCTL as one of the key players in Nepal’s tourism infrastructure sector. If visitor numbers meet projections and the hospitality services gain traction, the company could enjoy sustainable growth and profitability over the coming years.
The opening of Bandipur Cable Car and Tourism Limited’s IPO marks a significant step forward for the company and the regional tourism sector. With its blend of transportation and hospitality services, the project promises to enhance accessibility to one of Nepal’s most charming destinations while offering attractive opportunities for investors. The response from the market over the coming days will determine the pace at which BCTL can move forward with completing its project and beginning full-scale operations.
