Bandipur Cable Car IPO opens for public from August 27

Kathmandu: Applications for the IPO of Bandipur Cable Car & Tourism will be open from August 27.

The company, which has already allotted shares to locals of project-affected areas and Nepalis working abroad, is now opening the issue for the general public.

The company, with an issued capital of Rs 2.83 billion, is offering 20.70 percent – equivalent to 5.86 million shares worth Rs. 586 million. Of this, 566,000 shares were allocated to project-affected locals, 529,400 shares to Nepalis employed abroad, 158,820 shares to company employees, and 264,700 shares to mutual funds. The remaining 4,341,080 shares are now available for the general public.

In the second phase, general investors can apply for a minimum of 10 shares and up to 20,000 shares at a par value of Rs 100 each. If oversubscribed, the IPO will remain open until August 31.

The estimated total cost of the Bandipur Cable Car project is Rs 3.85 billion. The normal payback period for the investment is calculated at 8.22 years, while the discounted payback period is 10.05 years. Rating agency CARE has assigned the company a “Double B” issuer rating.

Nepal SBI Merchant Banking is the issue and sales manager for the IPO.