27th August 2025, Kathmandu
Bandipur Cable Car and Tourism Limited, a major player in Nepal’s tourism infrastructure, has officially opened its Initial Public Offering (IPO) to the general public. This marks a significant milestone for the company and provides a golden investment opportunity for a wide range of investors.
Bandipur Cable Car IPO
The IPO, which commenced on August 27 (Bhadra 11), is the second phase of the company’s offering, following successful allocations to a number of key groups, including project-affected locals, Nepali migrant workers abroad, company employees, and various mutual funds. The move to a public offering will help fund the ambitious Bandipur Cable Car project, a landmark development poised to transform tourism in the region.
IPO Structure and Share Allocation
The company has received approval to issue a total of 5.86 million shares, which accounts for 20.7067% of its issued capital of Rs. 2.83 billion. The entire IPO issue is valued at Rs. 586 million. The allocation has been strategically structured to ensure broad participation from various stakeholders. Prior to the general public offering, shares were distributed as follows:
Project-Affected Locals: A total of 566,000 shares were specifically reserved for residents of the areas directly impacted by the project. This allocation reflects the company’s commitment to community engagement and ensures that locals can directly benefit from the development in their region.
Nepali Migrant Workers Abroad: Recognizing the immense contribution of Nepalis working overseas to the national economy, 529,400 shares were set aside for them. This provides an avenue for the Nepali diaspora to invest in the country’s growing tourism and infrastructure sectors.
Company Employees: In a move to foster ownership among its workforce, 158,820 shares were allocated to the company’s employees.
Mutual Funds: A total of 264,700 shares were distributed to collective investment funds, ensuring institutional participation in the IPO.
With these initial phases now complete, Bandipur Cable Car and Tourism Limited is offering the remaining 4,341,080 shares to the general public. These shares are available at a face value of Rs. 100 per unit, making the investment accessible to a large number of retail investors. The minimum application is set at 10 shares, while the maximum an investor can apply for is 20,000 shares. This tiered structure ensures that both small-scale investors and those looking to make a more substantial investment have an opportunity to participate.
Application Process and Key Dates
The application process for the Bandipur Cable Car IPO is designed to be convenient and accessible to all eligible investors. Applications can be submitted through a number of channels, including:
ASBA (Application Supported by Blocked Amount): Investors can apply through any bank or financial institution that is a member of the ASBA system, which is approved by Nepal Rastra Bank.
Mero Share: The online Mero Share portal, operated by CDS and Clearing Limited, provides a seamless and paperless way for investors to submit their applications from the comfort of their homes or offices.
The issue opened on August 27 (Bhadra 11), and has an earliest closing date of August 31 (Bhadra 15). If the IPO is not fully subscribed by the early closing date, the application window will remain open until the latest closing date of September 10 (Bhadra 25). The official issue manager for this IPO is Nepal SBI Merchant Banking Limited, which is overseeing the entire process to ensure transparency and a smooth allocation.
The Investment Thesis: Why This IPO Matters
The Bandipur Cable Car project is more than just a financial investment; it is an investment in Nepal’s future tourism infrastructure. Located in a popular hilltop destination known for its scenic beauty and cultural heritage, the cable car is poised to significantly boost both domestic and international tourist arrivals. The project’s total estimated cost is Rs. 3.85 billion, with a simple payback period of 8.22 years and a discounted payback period of 10.05 years. These financial metrics, while long-term in nature, indicate a viable infrastructure project with the potential for steady, consistent returns.
Nepal’s cable car industry has a strong track record of success. Previous projects, such as the ones in Manakamana, Chandragiri, and Kalinchowk, have seen robust passenger numbers and consistent revenue growth. Investors are optimistic that the Bandipur project will follow a similar, if not more successful, trajectory. This IPO provides investors with a unique opportunity to become part of this growth story and contribute to the expansion of sustainable tourism in the country. The project is a symbol of Nepal’s broader goal of expanding its infrastructure and creating eco-friendly tourist experiences that are both profitable and responsible.
Anticipated Demand and Investor Action
Given the recent history of IPOs in Nepal, which are often oversubscribed, it is highly likely that the Bandipur Cable Car and Tourism Limited IPO will also attract overwhelming demand. This typically results in a pro-rata allotment, where investors receive a portion of the shares they applied for. To maximize their chances of securing an allotment, interested investors are advised to submit their applications as early as possible within the stipulated period. Ensuring that their bank account is ASBA-enabled and their Mero Share account is up-to-date are crucial prerequisites for a hassle-free application process.
This IPO is a pivotal event that connects the financial market with the real economy, offering the public a direct stake in a project that is expected to generate economic benefits and enhance Nepal’s tourism profile. The availability of 4.34 million shares to the general public at an affordable price point makes this a compelling opportunity for anyone looking to invest in Nepal’s promising future.
For More: Bandipur Cable Car IPO