The Initial Public Offering (IPO) allotment of Hotel Forest Inn Private Limited was successfully concluded today at the premises of Holiday Inn Resort, Budhanilkantha, marking a significant milestone for the company as it prepares to position itself in Nepal’s premium hospitality sector. The allotment process was carried out in the presence of representatives from the issue management team, regulatory stakeholders, and company officials.
The company had issued a total of 33,20,000 unit shares to the general public under its IPO, which remained open for subscription from 22nd Magh to 26th Magh, 2082 (Nepali calendar). The offering attracted overwhelming interest from investors across the country, reflecting growing confidence in Nepal’s tourism and hotel industry.
Capital Structure and Share Distribution
Hotel Forest Inn has an issued capital of Rs. 2 Arba. As part of its plan to raise public participation, the company allocated 20 percent of the issued capital, equivalent to 40,00,000 unit shares, for public issuance. Out of this public portion, 10 percent (4,00,000 units) had already been allotted to Nepali citizens working abroad, ensuring diaspora participation in the project.
In accordance with regulatory provisions, the company reserved 2 percent of the shares, totaling 80,000 units, for its employees, while 5 percent (2,00,000 units) was allocated to mutual funds to encourage institutional investment. After setting aside these categories, the remaining 33,20,000 unit shares were made available to the general public.
Applications Received and Lottery-Based Allocation
The IPO witnessed an enthusiastic response, receiving 23,71,315 valid applications demanding a total of 2,57,45,700 units, far exceeding the shares available. Due to discrepancies and non-compliance with application guidelines, 33,162 applications representing 4,11,660 units were disqualified during the verification process.
Given the massive oversubscription, shares were distributed through a computerized lottery system. As per the final allotment results, 3,32,000 applicants were allotted 10 units (kitta) each, ensuring a fair and transparent distribution mechanism in line with Nepal Securities Board regulations. The high number of applicants compared to the limited shares meant that a large portion of investors remained without allotment.
How Investors Can Check Results
Investors can access their IPO results through multiple digital platforms, including CDSC IPO Result, MeroShare, and the issue manager NIC Asia Capital Limited. These systems have streamlined result dissemination, allowing applicants to verify allotments conveniently online.
Project Background and Development Plans Of Hotel Forest Inn Limited
Incorporated on November 22, 2010, Hotel Forest Inn Private Limited is developing a modern hospitality property in Budhanilkantha on a land area of approximately 142,783 square feet. The project envisions a full-service hotel featuring 102 room keys and international-standard amenities aimed at catering to both leisure and business travelers.
The Hotel Forest Inn Limited is proposed to be positioned as a five-star category property, targeting the growing number of religious, leisure, and conference visitors to the Budhanilkantha–Shivapuri region, a gateway to northern trekking routes and spiritual tourism destinations.
International Collaboration and Branding
To strengthen its global appeal and operational standards, the company has entered into a license agreement with InterContinental Hotels Group to operate under the internationally recognized “Holiday Inn” brand. This partnership is expected to bring global management expertise, standardized service systems, and international marketing reach, enhancing Nepal’s capacity to host upscale travelers.
Credit Rating Reflects Moderate Risk Profile
The project’s financial outlook has been evaluated by CARE Ratings Nepal Limited, which assigned a ‘CARE-NP BB-’ rating to the company’s long-term bank facilities. The rating indicates a moderate risk profile, reflecting both the opportunities and challenges associated with large-scale hospitality investments in an evolving tourism market.
Boost to Tourism Infrastructure
Industry observers view the successful IPO issuance and strong investor response as a positive indicator for Nepal’s hospitality and tourism sectors, which continue to recover and expand following global disruptions in recent years. The project is expected to generate employment, enhance accommodation capacity, and contribute to the development of Budhanilkantha as a high-end tourism hub.
With capital now secured through public participation, Hotel Forest Inn Limited is moving forward with its operational roadmap, aiming to establish itself as a landmark international-standard hotel catering to both domestic and foreign guests.
