IPO Issue of Bandipur Cable Car and Tourism Limited Closing Today; Oversubscribed 5.87 Times So Far

Bandipur Cable Car and Tourism Limited is closing the issue of 43,41,080 units of IPO shares at a par value of Rs 100 from today, the 15th Bhadra, 2082. The issue was opened for the general public on 11th Bhadra, 2082.

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, were allotted 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 later. Of this general public issue, 10%, a total of 5,29,400 unit shares, were allotted for Nepalese citizens working abroad. Of the general public issue, 3%, i.e., 1,58,820 units, have been set aside for the employees of the company, and 5% of the total offered shares, i.e., 2,64,700 units, have been set aside for the mutual funds. The remaining 43,41,080 units are for the general public, which will be opened from today.

Nepal SBI Merchant Banking Limited has been appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 20,000 units.

According to CDSC, 21,31,070 applicants have applied for 2,55,02,210 units. Thus, the issue has been oversubscribed 5.87 times.

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).