Bandipur Cable Car and Tourism Limited (BCTL) has officially completed the allotment of its much-anticipated Initial Public Offering (IPO) today at the premises of the issue manager, Nepal SBI Merchant Banking Limited, located in Naxal, Kathmandu. This significant milestone marks another step in the company’s journey toward establishing itself as a key player in Nepal’s growing tourism and hospitality industry.
The company had floated a total of 43,41,080 units of shares for the general public, which were open for subscription from 11th Bhadra 2082 to 15th Bhadra 2082. The IPO attracted overwhelming investor participation, reflecting the strong confidence of the general public in the project’s future prospects.
Share Structure and Allocation
Bandipur Cable Car and Tourism Limited has an issued capital base of Rs. 2.83 Arba, of which 20.7067%, equivalent to 58,60,000 unit shares worth Rs. 2.31 Crores, was earmarked for issuance to the general public. The distribution of shares was structured across different investor categories to ensure balanced participation.
Out of the total public issue, 2% (5,66,000 units worth Rs. 5.66 Crores) were allocated to project-affected locals from Tanahu and Gorkha districts. In addition, 10% (5,29,400 units) were reserved for Nepali citizens working abroad, providing an opportunity for migrant workers to invest in Nepal’s tourism infrastructure. Similarly, 3% (1,58,820 units) were reserved for employees of the company, while 5% (2,64,700 units) were set aside for mutual funds. The remaining 43,41,080 units were offered to the general public.
Strong Demand and Oversubscription
The IPO garnered remarkable interest from investors, receiving a total of 2,422,177 valid applications for 27,637,720 units, far exceeding the available shares. This massive oversubscription highlighted the confidence of investors in the growth potential of the company and Nepal’s tourism sector as a whole.
However, 2,945 applications for 39,110 units were disqualified due to various reasons, including technical errors and incomplete information. Despite this, the allotment process was conducted fairly and transparently under the prescribed guidelines.
Allotment Module
In line with the allotment module, 434,108 applicants were allotted 10 units each via a lottery system, reflecting the high level of demand compared to the limited supply. The IPO results have been made accessible to investors through the CDSC IPO Result platform, MeroShare, and the official website of Nepal SBI Merchant Banking Limited, ensuring transparency and convenience for all applicants.
Ratings and Risk Profile
CARE Ratings Nepal Limited (CRNL) has reaffirmed its issuer rating for Bandipur Cable Car and Tourism Limited as ‘CARE-NP BB (Is)’, indicating a moderate risk of default in the timely servicing of financial obligations within Nepal. Similarly, CRNL has reaffirmed the ‘CARE-NP BB’ rating for BCTL’s long-term bank facilities, signaling cautious optimism about the company’s ability to manage financial responsibilities while executing its ambitious tourism project.
About the Company and Its Project
Bandipur Cable Car and Tourism Limited was incorporated on January 6, 2013 as a private limited company, with a vision to boost tourism infrastructure in one of Nepal’s most scenic and culturally rich towns, Bandipur. The company is spearheading a cable car and hotel project in the Tanahu district, which has been recognized as a “National Priority Project” by the National Planning Commission (NPC).
The project is designed to operate under two primary modalities. The first is a modern cable car transportation service connecting the base station to the hilltop station and vice versa, enhancing accessibility for domestic and international tourists. The second is lodging and hospitality services through a planned hotel project, aimed at offering high-quality accommodations and enriching the tourism experience in Bandipur.
A Boost for Nepal’s Tourism Industry
The completion of the IPO allotment not only marks a significant achievement for Bandipur Cable Car and Tourism Limited but also signifies a broader boost for Nepal’s tourism and hospitality industry. With Bandipur already regarded as one of the country’s most charming hill towns, known for its preserved cultural heritage, panoramic mountain views, and warm local hospitality, the addition of a modern cable car and premium hotel facilities is expected to enhance its appeal to both domestic and international visitors.
Investors, industry experts, and tourism stakeholders view the project as a key development in decentralizing tourism benefits beyond the Kathmandu Valley and Pokhara, thereby contributing to regional economic growth. With Nepal positioning itself as a global adventure and cultural destination, projects like Bandipur Cable Car and Tourism Limited are expected to play a pivotal role in boosting infrastructure, creating employment, and strengthening local economies.
As the allotment concludes, all eyes are now set on the successful implementation of the project and its eventual contribution to Nepal’s tourism growth. The overwhelming investor response to the IPO reflects the optimism and trust in both the company’s vision and the future of Nepal’s tourism industry.
