Bandipur Cable Car and Tourism Ltd. Opens IPO for Project-Affected Locals and Foreign Nepalese Immigrants From Today

Bandipur Cable Car and Tourism Limited is opening the issue of an Initial Public Offering (IPO) of 5,66,000 units of IPO shares to the project-affected locals of Tanahu and Gorkha District and 5,29,400 units of IPO Shares to Foreign Nepalese Immigrants from today, 6th Shrawan, 2082.

The IPO for locals in Tanahu and Gorkha is open from 6th Shrawan to 20th Shrawan, 2082, with a possible extension until 4th Bhadra if not fully subscribed. For Nepalese working overseas, the IPO is also open from 6th Shrawan but will close on 9th Shrawan, 2082, unless extended until 20th Bhadra in the case of under-subscription.

The issued capital of the company is Rs. 2.83 Arba. Of this, 20.7067%, i.e., 58,60,000 unit shares, will be issued to the public. Out of the total issue capital, 2%, which amounts to 5,66,000 unit shares worth Rs. 5.66 Crores, will be allocated to project-affected locals of Tanahu and Gorkha districts. The remaining 18.7067% of the issued capital, i.e., 52,94,000 unit shares, will be offered to the general public at a later date.

Of this general public issue, 10%, a total of 5,29,400 unit shares, have been set aside for Nepalese citizens working abroad, and the issue for this category will open from today.

For the project-affected locals and Nepalese citizens working abroad, the minimum application quantity is 10 units, while the maximum quantity is 20,000.

Nepal SBI Merchant Banking Limited has been appointed as the issue manager for the IPO issuance.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ for Bandipur Cable Car and Tourism Limited (BCTL), indicating a moderate risk of default in the timely servicing of financial obligations within Nepal. Additionally, CRNL has reaffirmed the ‘CARE-NP BB’ rating assigned to BCTL’s long-term bank facilities.

Bandipur Cable Car is a private limited company, incorporated on January 6, 2013. It is coming up with a cable car and hotel project in Bandipur, Tanahu district of Nepal. The project has two modalities of services to be offered, i.e., first transportation from base station to hilltop station and vice-versa through cable car; and second is lodging & hospitality services through the Hotel. The project has been listed as a “National Priority Project‟ by the National Planning Commission (NPC).

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