Hotel Forest Inn IPO Allotment Result Published
16th February 2026, Kathmandu
The capital market of Nepal has reached another high point with the official allotment of the initial public offering for Hotel Forest Inn Limited. The distribution process was finalized today, Falgun 4, 2082, by the appointed issue and sales manager, NIC Asia Capital. The allotment ceremony took place at the Holiday Inn Resort Kathmandu, situated in the Budhanilkantha area, beginning at 9:30 AM. This event marks the transition of the boutique hospitality project into a publicly held entity and follows a period of intense interest from retail investors across the country. The successful allotment highlights the robust demand for hospitality sector stocks as the tourism industry in Nepal continues to show strong signs of recovery and expansion.
Hotel Forest Inn IPO
According to the official figures released by the issue manager, Hotel Forest Inn offered 3.32 million ordinary shares to the general public in this final phase of its issuance. These shares were priced at a face value of 100 rupees per unit. This public portion was part of a larger issuance of 4 million units, representing 20 percent of the company’s total issued capital of 2 billion rupees. Before opening the subscription to the general public, the company had already completed the allotment for Nepalese citizens working abroad, mutual funds, and its own employees. Specifically, 400,000 units were reserved for migrant workers, 200,000 units for mutual fund schemes, and 80,000 units for the company’s staff members. The remaining volume of 3,320,000 shares was then made available to the broader public from Magh 22 to Magh 26.
The data provided by the Central Depository System and Clearing Limited reveals an extraordinary level of participation. A total of 2,660,452 applicants submitted bids for a combined total of 29,978,860 shares. This indicates that the IPO was oversubscribed by approximately nine times the available units. During the verification process, NIC Asia Capital identified that 2,371,315 applications were valid and met all regulatory requirements. However, 289,137 applications were rejected due to various technical reasons, such as duplicate submissions, incorrect bank details, or failure to meet the ASBA requirements. The valid demand for the shares stood at 25,745,700 units, reinforcing the competitive nature of this particular offering in the current market environment.
Due to the significant oversubscription, the allotment was conducted through a lottery system in accordance with the prevailing securities issuance and allotment guidelines of Nepal. Under this system, exactly 332,000 lucky applicants were selected to receive 10 shares each. This means that a vast majority of the participants, totaling 2,039,315 valid applicants, were left empty handed. For those who were successful in the lottery, the par value of 100 rupees per share represents a potential for significant capital appreciation once the stock is listed on the secondary market. Historical trends for hotel sector IPOs in Nepal suggest that such stocks often trade at a premium to their net worth shortly after listing, especially when they are associated with international brands.
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Hotel Forest Inn Limited is currently developing a luxury 5 star hotel project in the scenic Budhanilkantha region of Kathmandu. The facility, which spans over 1.24 hectares of land, is designed to feature 102 guest rooms and a range of premium amenities including banquet halls, fine dining restaurants, and wellness centers. A key highlight for investors is the license agreement the company has signed with the InterContinental Hotels Group to operate the property under the Holiday Inn brand. This international partnership is expected to provide the hotel with a global distribution network and a high degree of brand recognition among both domestic and international travelers. The project had earlier received a BB minus rating from CARE Ratings Nepal, indicating a moderate level of credit risk and an average capacity for meeting financial obligations.
Investors who participated in the IPO can now check their allotment status through several official digital platforms. The results are available on the dedicated IPO result portal of CDSC at iporesult.cdsc.com.np, where applicants must enter their 16 digit Beneficiary Owner Identification Number to view their status. Additionally, the results can be found through the Mero Share system and the official website of NIC Asia Capital. Those who were not allotted shares can expect the unblocking of their funds in their respective bank accounts within the next two to three business days, as the issue manager coordinates with the participating banks and financial institutions.
The success of the Hotel Forest Inn IPO is being viewed by market analysts as a positive indicator for upcoming offerings in the tourism and hospitality sector. As the government continues to promote Nepal as a premier travel destination, investors are increasingly looking for opportunities to diversify their portfolios beyond the traditional banking and hydropower sectors. The addition of a new 5 star hotel property to the Nepal Stock Exchange will provide more depth to the hotel and tourism sub index and offer investors a way to participate in the long term growth of the country’s hospitality infrastructure.
In conclusion, the allotment of the Hotel Forest Inn IPO on Falgun 4 has successfully distributed 3.32 million shares to 332,000 individual investors. While the high number of rejected applications and the competitive lottery system meant that many were unable to secure an allotment, the process was conducted transparently and in line with regulatory standards. As the company moves toward the listing phase, the focus will now shift to its operational performance and the upcoming commercial launch of the Holiday Inn property. Successful applicants are advised to monitor the Nepal Stock Exchange notices for the announcement of the listing date and the opening price range for the shares.
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