Budhanilkantha Heritage Limited, the company behind the prestigious Lemon Tree Premier Hotel in Kathmandu, has officially announced a share sale of 854,281 undistributed promoter shares. The shares, which were originally part of a recent 2:1 rights issue but remained unsubscribed, are now available for purchase through a public auction, attracting both existing shareholders and new investors.
The offering provides a unique opportunity for investors to participate in Nepal’s growing luxury hospitality sector ahead of Budhanilkantha Heritage’s planned Initial Public Offering (IPO).
Details of the Share Sale
The shares on offer are primarily promoter group shares, but the sale is open to external individuals and institutional investors. Interested applicants can bid at a minimum price of NPR 150 per share, above the face value of NPR 100, reflecting the strategic value of this established hospitality asset.
Key Details:
- Total Units Available: 854,281 shares
- Minimum Bid Price: NPR 150 per share
- Eligibility: Open to promoter shareholders, new individuals, and institutional investors
The structure of the sale allows existing promoters to increase their stake with a minimum of 1,000 shares, while new individual or institutional investors must apply for at least 20,000 shares (NPR 3 million minimum investment). This threshold targets high-net-worth investors and corporate participants seeking a significant pre-IPO position.
Application Process and Deadline
Investors must submit their applications by Poush 28, 2082 (January 12, 2026) at the company’s registered office located at Hotel Lemon Tree Premier, Budhanilkantha, Kathmandu. Bids must include the physical application form along with the required deposit or bank guarantee.
Prospective investors are advised to ensure that all necessary documents, including KYC and tax clearance certificates, are complete to avoid rejection.
Strategic Importance of the Sale
The Budhanilkantha Heritage share sale is part of the company’s strategy to optimize its capital structure and broaden its shareholding base. The hotel operates as a special purpose vehicle (SPV) with 102 rooms, offering a premium “resort-style” experience within Kathmandu Valley.
For investors, acquiring these shares provides a pre-IPO entry into a hospitality asset managed by an internationally recognized brand. This opportunity not only offers potential capital appreciation but also allows participation in the future growth of Nepal’s luxury tourism sector.
Considerations for Potential Investors
Investors should consider several factors before participating:
- Operational Performance: Budhanilkantha Heritage transitioned from private to public ownership in 2078 BS and has recently started full-scale commercial operations.
- Credit Rating: ICRA Nepal has assigned a B+ issuer rating, reflecting both the risks and potential rewards of the hospitality sector’s post-pandemic recovery.
- Liquidity and Restrictions: As promoter shares, these may carry a lock-in period or specific trading restrictions compared to ordinary shares.
With over 854,000 shares on offer and the deadline approaching on January 12, 2026, Budhanilkantha Heritage’s share sale represents a rare opportunity for investors seeking strategic stakes in Nepal’s premium hospitality industry. The auction paves the way for broader market participation while strengthening the company’s foundation ahead of its upcoming IPO.
