Bids for Unclaimed Rights Shares of City Hotel Opened Yesterday, November 21
22nd November 2025, Kathmandu
City Hotel Limite finalized the sale of its unclaimed rights shares yesterday, November 21, by opening the sealed bids received during the auction period.
City Hotel Rights Shares
This auction is a crucial step for the company to fully subscribe its previous rights offering and bolster its capital base.
Auction Details and Unclaimed Shares
The auction process was initiated to sell the portion of the rights shares that were not subscribed by the eligible existing shareholders of the company.
Total Unclaimed Shares: The company is auctioning a total of 21,50,441 units of unclaimed rights shares.
Auction Period: The bidding for these shares was open for a short, confidential window, running from November 9 to November 16.
Minimum Bid Rate: Interested individuals, companies, and institutions were required to submit sealed bids at a minimum rate of NPR 100 per share. This is the face value of the shares, ensuring the company secures at least the par value for all sold units.
Share Types: The total lot of unclaimed shares includes a mix of share types from the original rights issue, specifically:
Promoter shares under lock-in: A large portion of these shares, approximately 19,80,999 units, belong to the promoter group and will remain locked in until Jestha 04, 2083.
Employee shares under lock-in: Approximately 6,000 units of employee shares are also included and subject to the same lock-in period.
Ordinary shares: The remaining portion, approximately 1,54,419 units, belongs to the public shareholder group.
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Minimum Bid Quantity: For the ordinary shares, the minimum bid quantity for any interested party was set at 100 units.
Bid Opening Ceremony and Issue Manager
The official opening of the sealed bids is scheduled to take place today, which will determine the cutoff price and the successful bidders for the shares.
Bid Opening Date and Time: The sealed bids opened on November 21 at 9 AM .
Location: The opening ceremony will be conducted at the central office of the issue manager, Prabhu Capital Limited, located in Kamaladi, Kathmandu.
Issue Manager’s Role: Prabhu Capital Limited is responsible for overseeing the entire auction process, including collecting the bids, ensuring compliance with regulatory guidelines, opening the bids transparently, and processing the subsequent allotment of shares to the highest bidders.
Background and Investor Opportunity
The shares being auctioned originated from the company’s previous 1:0.80 rights offering, which was issued to all eligible shareholders. Although the initial rights issue saw a high subscription rate, a portion remained unclaimed, necessitating this auction.
Initial Issue: The company had issued a total of 13.2 million rights shares, of which approximately 85.22 percent were successfully allotted. The 21,50,441 units currently being auctioned represent the balance of the unsubscribed shares.
Investor Opportunity: The auction provides a significant opportunity for both existing shareholders and new investors to acquire a large volume of City Hotel Limited shares at a competitive price determined by the market demand, provided their bid price is above the floor of NPR 100. Acquiring the promoter and employee lock-in shares allows successful bidders to hold the stock for future gains, even though they cannot trade them until the lock-in period expires.
The completion of this auction is expected to inject the required capital into the company, fully subscribing the rights issue and strengthening City Hotel Limited’s overall financial structure for its operations in the tourism and hospitality sector.
For More: City Hotel Rights Shares
