In a significant step toward expanding public participation in national infrastructure projects, Bandipur Cable Car and Tourism Limited has officially announced the closing of its Initial Public Offering (IPO) shares for Nepalese citizens working abroad today, 9th Shrawan, 2082. The offering had opened on 6th Shrawan, 2082, and marks a crucial phase in the company’s capital-raising initiative to fund its highly anticipated cable car and hotel project in the scenic hill town of Bandipur, located in the Tanahu district.
Overview of the IPO Structure
Bandipur Cable Car and Tourism Limited has an issued capital of NPR 2.83 Arba. Out of this, 20.7067%, or 58,60,000 unit shares, are being made available to the public. As part of this public issue, a specific allocation of 2%, that is, 5,66,000 units worth NPR 5.66 Crores, has been earmarked for project-affected locals from the Tanahu and Gorkha districts. These allocations aim to ensure that communities directly impacted by the project gain ownership and economic benefit from it.
The remaining 18.7067%, or 52,94,000 unit shares, will be offered to the general public in upcoming phases of the IPO. From this portion, 10%, which totals 5,29,400 unit shares, was specifically reserved for Nepalese citizens currently employed abroad. The issue for this category closes today, wrapping up the company’s first round of public engagement.
Minimum and Maximum Investment Parameters
For foreign-based Nepalese applicants, the minimum application limit was 10 units, while the maximum cap was set at 50,000 units. This allowed a wide range of individual investors to participate in the IPO, from small-scale contributors to larger stakeholders. The initiative was designed to encourage greater involvement of the Nepali diaspora in the country’s infrastructure development and investment landscape.
The IPO is being managed by LS Capital Limited, a reputable name in Nepal’s financial services sector. The firm is overseeing the distribution, collection, and processing of applications for the IPO to ensure a transparent and fair process for all categories of investors.
Credit Rating and Financial Risk Assessment
Adding confidence to potential investors, CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ for Bandipur Cable Car and Tourism Limited. This rating signifies a moderate risk of default in meeting financial obligations on time within the local context of Nepal.
Moreover, CRNL has also reaffirmed the ‘CARE-NP BB’ rating for BCTL’s long-term bank facilities, further indicating that while the company carries some credit risk, it remains manageable under current operating and financial conditions. These ratings are crucial in giving investors a clearer picture of the company’s ability to generate returns and manage liabilities.
Strategic Importance and Project Highlights
Bandipur Cable Car and Tourism Limited was incorporated on January 6, 2013, as a private limited company. Since its inception, the company has been dedicated to the development of an integrated cable car and tourism hospitality project in Bandipur, a popular tourist destination known for its panoramic views, historic architecture, and cultural heritage.
The project includes two major service components:
- Cable Car Transportation Service: This will provide transportation from the base station to the hilltop and vice versa, making it easier and faster for tourists and locals to access the hill town of Bandipur.
- Hospitality Services: The second component of the project includes hotel development at the hilltop, offering accommodation and other hospitality services to enhance the overall tourism experience.
In recognition of its potential to significantly boost tourism and regional development, the National Planning Commission (NPC) has listed the Bandipur Cable Car project as a “National Priority Project”. This designation reflects the project’s strategic value to the nation’s economy and its alignment with the government’s vision to enhance tourism infrastructure across Nepal.
Closing Note: Commitment to Inclusive Development
The IPO’s closing today for foreign-based Nepalese investors represents a milestone in financial inclusion, allowing the global Nepali community to be stakeholders in one of the country’s flagship tourism development projects. Through this offering, Bandipur Cable Car and Tourism Limited aims not only to raise capital but also to promote broader public ownership and foster a sense of shared responsibility for Nepal’s development.
As the company prepares for the next phase of IPO issuance for the general public, interest in the project is expected to grow significantly. With its combination of scenic value, transportation utility, and hospitality potential, the Bandipur Cable Car and Hotel project is seen as a transformational venture that will uplift both the tourism sector and the local economy.
The company has expressed gratitude for the overwhelming response received from Nepali investors abroad and reaffirmed its commitment to transparency, project completion, and delivering long-term value to shareholders. This marks the successful closure of the first phase of IPO issuance for foreign investors, with general public subscriptions to be announced soon.
