Kalinchowk Darshan Limited Is In The Process Of Issuing IPO Of Rs. 120 Million

Kalinchowk Temple, which is around a six-hour drive from Kathmandu, is one of the major winter vacation spots in Nepal. It is found at the beat station of the Kalinchowk cable car and pulls in various visitors all through the year, but amid the rainy season when the stream of guests is comparatively low. Due to the coronavirus widespread, the stream of guests in the year, 2020/21 was altogether decreased. In 2021 and 2020, Kalinchok Darshan Limited has earned an operating income of Rs. 36.9 million and Rs 37.2 million respectively. However, the performance is expected to improve during the second half of the fiscal year 2022 as it is the peak season (Oct-Feb) to earn revenue.

Recently CARE Ratings Nepal Limited (CRNL) has relegated the rating of ‘CARE-NP BB+(Is)’ to Kalinchowk Darshan Limited (KDL). According to CARE Ratings, the income of the company has come to Rs 21 million due to the increment in the number of travelers since the start of this year. In the interim, 50,000 sightseers have boarded the cable car.

The company is proposing to bring about capital use of around Rs 250 Million amid FY23 towards setting up 35-room lodging property. The plan is to be supported by value – mostly from promoters and through the proposed IPO. The amount of process of issuing an IPO is Rs. 120 Million, which is likely to be completed in the next 6-9 months. The proceeds of the IPO are likely to be used for the proposed CAPEX or repayment of existing debt. The company had a debt-equity ratio of 0.92x during the mid-july of FY 2021. Also, KDL has 85 founding investors and the promoters have invested Rs. 185 million for the said project.

KDL has a seven-member board of directors with experience in a wide range of sectors including tourism and hospitality. The board is led by Mr. Bal Krishna Shiwakoti, Chairman, who is also a board member in Investment Board of Nepal, and Director in Mega Bank Nepal Limited and Jiri Chiya Udhyog (processing of tea). The board is aptly supported by an experienced management team led by Mr. Ashok Shiwakoti, Chief Executive Officer, who has over 20 years of experience in various industries.