KATHMANDU, Aug 27: Bandipur Cable Car has launched its Initial Public Offering (IPO) for the general public.
The company has issued 4,341,080 shares worth Rs 434.1 million, each priced at Rs 100, starting Wednesday. Applications can be submitted until August 30.
Earlier, the company had already allotted 566,000 shares worth Rs 56.6 million to locals from project-affected areas, including Bandipur and Aanbukhaireni rural municipalities, Bhanu Municipality-1 in Tanahun, and Palungtar-7 in Gorkha.
The Originality of Bandipur
In the first phase, 529,400 shares worth Rs 52.94 million were also distributed to Nepalis working abroad.
The Securities Board of Nepal has approved the company’s plan to issue a total of 5,860,000 shares worth Rs 586 million, equivalent to 20.70 percent of its issued capital of Rs 2.83 billion. SBI Merchant Banking is managing the IPO.
Credit rating agency Care Ratings Nepal has assigned the company a “CARENP BB Issuer Rating,” indicating an average risk in meeting its obligations.
As of the end of last fiscal year (mid-April), the company reported an accumulated loss of Rs 170.3 million, with a net worth per share of Rs 92.41. The estimated total project cost stands at Rs 3.85 billion.
Bandipur Cable Car began commercial operations on Jestha 31, 2081. The largest shareholder is RKD Holdings Limited with 16.13 percent. Other major shareholders include Tourism Investment Fund Limited (4.51 percent), Panchase Cable Car and Tours Limited (2.24 percent), Sagarmatha Lumbini Insurance (2.23 percent), and Roshan Ghising (1.56 percent). Chairman Ram Chandra Sharma personally owns 187,000 shares. Sharma also chairs both RKD Holdings and Tourism Investment Fund.
