Bandipur Cable Car and Tourism Limited has officially announced that it will be opening its Initial Public Offering (IPO) for the general public on 11th Bhadra, 2082. The company will issue a total of 43,41,080 unit shares at a par value of Rs. 100 per share, providing investors across the country with an opportunity to participate in one of Nepal’s key infrastructure and tourism ventures. The offering is expected to generate significant attention given the scale of the project and the strategic importance of Bandipur as a tourism hub.
The IPO will close early on the 15th Bhadra, 2082, but if it is not fully subscribed by that date, the application period will remain open until the 25th Bhadra, 2082. This timeline ensures that investors, both within the country and abroad, have adequate opportunity to take part in the public offering.
Capital Structure and Allocation of Shares
The total issued capital of Bandipur Cable Car and Tourism Limited is Rs. 2.83 Arba, out of which 20.7067%, equivalent to 58,60,000 unit shares, has been allocated for public issuance. The allocation has been carefully structured to include multiple categories of investors, ensuring inclusivity and wider participation.
Of the total issue, 2% (5,66,000 unit shares worth Rs. 5.66 Crores) have already been allotted to project-affected locals from the Tanahu and Gorkha districts, recognizing the importance of community participation and benefit-sharing in development projects. The remaining 18.7067% of the issued capital, equivalent to 52,94,000 unit shares, is designated for the general public.
From this general public issue, 10% (5,29,400 unit shares) has been reserved for Nepali citizens currently working abroad, while 3% (1,58,820 unit shares) have been set aside for the employees of the company. Additionally, 5% (2,64,700 unit shares) will be allocated to mutual funds, creating an opportunity for institutional investors to participate. The remaining 43,41,080 unit shares will be directly available for subscription by the general public starting from 11th Bhadra.
Application Process and Issue Manager
To facilitate the issuance process, Nepal SBI Merchant Banking Limited has been appointed as the issue manager. Investors can apply for a minimum of 10 unit shares and up to a maximum of 20,000 units, allowing both small-scale and large-scale investors to participate.
The allocation structure and flexible application size are designed to encourage mass participation, particularly from retail investors who are increasingly engaging in Nepal’s growing securities market. The IPO is expected to draw substantial interest, given the project’s prominence and the rising popularity of tourism-related investments in the country.
Credit Rating and Risk Assessment
In terms of financial credibility, CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ for Bandipur Cable Car and Tourism Limited. This rating indicates a moderate risk of default in the timely servicing of financial obligations within Nepal. Additionally, CRNL has reaffirmed the ‘CARE-NP BB’ rating for the company’s long-term bank facilities.
While the rating suggests moderate risk, it is not uncommon for companies engaged in large-scale infrastructure and tourism projects to carry such ratings, particularly during the initial phases of development and expansion. Investors are expected to weigh both the opportunities and risks associated with the project before making decisions.
Company Background and Project Overview
Bandipur Cable Car and Tourism Limited, incorporated on January 6, 2013, is a private limited company that has emerged as a key player in Nepal’s tourism infrastructure sector. The company is currently developing an ambitious cable car and hotel project in Bandipur, located in the Tanahu district.
The project offers two primary modalities of services. The first is transportation, providing cable car rides between the base station and the hilltop station, enhancing accessibility to one of Nepal’s most scenic hill towns. The second modality focuses on hospitality services, as the company plans to operate a hotel at the hilltop station, offering accommodation and related tourism facilities to visitors.
The dual focus on transportation and hospitality is expected to significantly enhance Bandipur’s tourism appeal, attracting both domestic and international travelers. This integrated model not only boosts connectivity but also strengthens Bandipur’s positioning as a complete tourism destination.
National Recognition and Importance of the Project
The project has been recognized as a “National Priority Project” by the National Planning Commission (NPC), underscoring its importance to Nepal’s tourism and infrastructure development goals. With Bandipur being a well-known heritage town that attracts thousands of visitors annually, the introduction of a cable car system and modern hospitality facilities is expected to transform the local tourism landscape.
Moreover, the project is anticipated to generate significant economic benefits for the local community, including employment opportunities, increased business activities, and overall infrastructure development. It also aligns with Nepal’s broader strategy to diversify its tourism offerings and enhance the country’s competitiveness as a global travel destination.
Investor Interest and Market Expectations
Given the scale of the project, its designation as a national priority, and the strong tourism potential of Bandipur, analysts expect that the IPO will attract considerable investor interest. Nepal’s securities market has seen rising enthusiasm for IPOs, particularly in infrastructure, hydropower, and tourism sectors. The Bandipur Cable Car project combines elements of both tourism and infrastructure, making it an appealing prospect for a wide range of investors.
While the credit rating indicates moderate risk, the long-term growth potential of the project, coupled with the increasing importance of tourism in Nepal’s economy, is likely to outweigh short-term concerns. If executed effectively, the project has the potential to become one of Nepal’s landmark tourism ventures.
The upcoming IPO of Bandipur Cable Car and Tourism Limited marks a significant step in the company’s journey and in Nepal’s broader tourism infrastructure development. With over 43 lakh shares being made available to the public, the offering represents an opportunity for investors to be part of a project that promises both financial returns and a lasting impact on the country’s tourism sector.
As the application period opens on 11th Bhadra, the market will be closely watching the subscription response, which is expected to be robust. The project’s recognition as a national priority, coupled with its unique blend of cable car transportation and hospitality services, positions it as a transformative development in Bandipur and a valuable investment prospect for the future.
